The market gains from Friday/Monday have almost been erased. With futures severely negative tonight we could see 1,878 on the S&P on Wednesday.
The market rolled over on a multitude of reasons, some valid, some not. The biggest point tonight is that we do not want to enter new positions in a market that is reversing directions almost daily with 200 point moves.
Indecision forms bottoms. Buyers and sellers alike do not know what will happen from day to day. This forces traders to go to cash after getting a bloody nose from being smacked with reversal after reversal. Eventually those left in the market will find a balance point and a direction will appear.
There are indications today that we could decline further in the next couple of days. We could easily retest the August lows at 1,867 on the S&P. There is very strong resistance at 1,950. With no clear direction, it is best to stand aside. We have a lot of shorts in the portfolio and we are ready for a continued decline. No new plays tonight.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays