Hello Everyone,
Following Tuesday's move into supply for the SPX/QQQ, we saw a clean rejection on Wednesday with strong downside momentum resulting in large bearish engulfing candles. Today, we saw some early downside follow through from yesterday's momentum, that was reversed with a strong bounce (relief rally) that was ultimately met with heavy selling at stronger resistance levels. With an elevated VIX and negative Gamma backdrop, the market is swinging violently. Tech (which is heavily weighted in the SPX/QQQ continues to show distribution with some flow into small cap (value in particular). There is a timing window between July 26-30th (credit to FibQueen) for a potential bottom with the onus remaining on the bulls.
Please take a moment to look at the trade ideas.
