S&P 500 Sell Off Toward The Trendline Has Commenced!
In my post a couple days back we took a broad view of the S&P 500 and I mentioned how we could use the 10 year trend as a target. With today's sell-off that target is feeling feasible already.
Stocks Slammed To Start the Week
The market got wrecked to open the week and it's looking like we may have a double top at 2,815.
The 200 day moving average put up no fight at all as the index sold right through it today with no hesitation.
So where is the next stop?
That is where the trendline I mentioned comes into play. We bounced off it a couple weeks ago so probabilities favors the market testing it again.
Depending on how fast that happens (assuming it even does) then we could see 2,650 on the S&P before you know it.
Damn shame I missed today's open. Don't want to chase it now. However, if we gap higher to open tomorrow I'll likely put on a short. Otherwise I'm sitting on my hands.
Have in mind that the bond market was closed today and volumes were low so tomorrow will be a better indication of the sentiment of the overall market although slicing through the 200 day is significant.
Yeah, I did notice the low volume. I'm really hoping we open higher tomorrow, would be a short opp using yesterdays open as a SL.
The level to watch now is the 2700 level.
True - I put on a swing short this morning. Prior top as my stop, profit target is the trendline down in the 2650 area.