Hello Everyone,
The major indices moved sharply lower today with the QQQ joining the SPX by breaking below its August lows. Weak bounces (unable to reclaim a supply zone) are indicative of a Wave 3/C decline that has been unfolding since the FOMC decision (we will adjust mapping if evidence changes).
Near the close ES came within a few points of its 200 day SMA and both SPX/QQQ showed some positive divergence leading to a bounce into the close. The VIX did not confirm yesterday's reversal and closed back above it's upper BB today. The VIX term structure continues to show higher ATM Calls for next maturity which is supportive for the bears. Yields and US Dollar continue to climb and provide headwinds for risk assets - monitor.
ES support below 4305/4302 and 4297/4290 with resistance at 4322 and 4335
Please take a moment to look at the trade ideas.
