Hello Everyone,
The major indices finally succumbed to sellers today The SPX had not closed down over one percent in over 20 sessions until today (from contraction comes expansion). Wide spread selling with all sectors closing red. We have been calling for a move lower (potential 4th wave) since the SPX broke down from its rising wedge - bulls were quite resilient in holding the 9 day EMA on the recent closes before finally relinquishing today. This outlook was supported by the large falling wedge on the VIX two hour chart that we have been posting over the past week. Today's selloff took price into some support levels and in after hours, both SPY/QQQ have had a nice bounce following several earnings beats and positive reactions (most notably MSFT).
For tonight initial resistance above for ES around 4117-4120 (today's breakdown level) with 4130 and 4141 above if recaptured. Holding below ES would target 4097 4083 4070 potential levels.
Please take a moment to look at the trade ideas.
