Hello Everyone,
On Tuesday morning the market sold but then quickly recovered and rallied up to a new high, perfectly tagging the 200 day MA on the SPX, and the weekly ATR average true range) and then reversed off these major resistance areas yesterday afternoon. It was to be expected for the market to get rejected at the 200 day MA on the first re-test. This morning the market gapped down strongly on the open and proceeded to sell off for the last couple hrs, however it then found support and put in a decent recovery bounce in the afternoon but sold off the last hr with the SPX closing down 31 points.
Remember guys: topping is a process, where's bottoming tends to be a one event thing.
The indexes still remain in these tight uptrend channel patterns (have not broken). However in the short-term we are monitoring today's lower high bounce within the confines of a downtrend channel with the lower high being a wave b or 2 (see the 15 and 10 min SPX views).
The systems continue to kick ass, what else can I say? The ES Bear Long remains long, no changes and no other systems have taken any trades (we need volatility for that).
The KISS daily systems have done well this time, from their market re-entry long in mid July with 6 higher low DVT's now in place to protect profits.
I'm not seeing much in the idea of trade ideas. On Tuesday Steve added the inverse ETF's SPXU and SQQQ as quick shorts on the market and those played out this morning.
Matt
