Hello Everyone,
Quick Notes: Yesterday the SPX rallied up to a previous resistance zone (3930-35) and late in the afternoon formed a small double top just below that resistance area. As a result of that rally, the intraday oscillators became overbought so I was looking for some type of pullback today. To be honest, I was leaning towards a range day (consolidation) but Mr. Market had other ideas. The SPX gapped down slightly today and then accelerated after breaking below 3900 (failed
retest from below) and then key support around 3380/85. In the afternoon, we did get a nice throwback rally (textbook corrective abc three wave bounce) for nearly 30 points right into the resistance zone I posted on the trading community for ES (3865-72) where it once again stalled and sold off to new intraday lows at the close. Recently, I have mentioned the seasonal backdrop has been weak during this timeframe and boy it sure spoke loudly today. Respect the current trend (down) until
evidence changes.
As I stated last week and re-iterated on Tuesday, it makes sense to reduce the number of trade ideas so one can effectively act with increased volatility. Hit and run type market and one must remain nimble.
Please take a moment to look at the trade ideas.
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2/24/21: New DVT for SPX 3795