The SPY is back to looking terrible under the 21 ema into this OPEX day. Yesterday afternoon we made our break lower and closed there which pushed us back into a downtrend. This morning we woke up down huge, the /nq was down 350 when I woke up but President Trump as he always seems to do threw the market a lifeline by saying he was not going to put harsh tariffs on China and we rallied hard and even flipped green for a bit. The issue now seems to be a combination of regional bank credit contagion which sent the KRE below the 200 day yesterday, momentum trades like bitcoin completely breaking down below the 200 day as well, and just technical market malaise as the 8/21 bearish crossover is unfolding right now in the SPY. We went up and tested the 21 today and sold off there. Next week we have some important earnings which can act as a catalyst for this market but right here, this looks bad but like yesterday, there is alot of time in the session and who knows where we close, but the close is all that matters. Technically speaking, this looks like a bear flag that wants to breakdown and possibly test that 100 day just below 640. Earnings the next 2 weeks have to save this market or it can get ugly quick.
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