Bears came out with vengeance after market failed to take out 8 EMA on daily chart.
In shorter time frame Our trusty 30 minute chart closed below that 20 EMA support on Monday. If you were long, that was your cue to exit. Support can only work for so long until it eventually gives in.
Gap down on Tuesday, create an intra day bear flag and all down hill from there. Typical Bear market playbook. Our short alert list from last blog NFLX , TSLA, FB, USO all did well and gave decent short entries throughout the day.
As far as where we go from here, there are no clear support on SPY . In terms of Fibonacci retracement. SPY managed to hold 50% retracement at 191 and bounced from there.
So 191 should be the support for now. If 191 goes, thing gets a little messier , No real support until 187 and 182.40 or a higher low in that range.If 191 holds that will gives Bulls some confidence as it will be seen as an higher low/1-2-3 long setup. Tricky situation out there as market is broken in all time frame and advantage is on Bear’s side. If you are new at trading or trading by yourself, be careful out there. This is the type of high volatile Market where majority of new traders blow off their accounts. If are not sure about a setup, sit out an wait for better times. Check out our 60 day Bootcamp course. Our program is designed in such a way that you come out of it ready to trade live in just 3 months. We teach you everything from risk management to scanning to trading strategies. I also share my profitable intraday trading strategy which will make you money short term regardless of Market condition. The class is one of a kind, see why you should sign up for the course here . You will also have access to a private community where you can ask questions, share charts and talk with the instructors or other traders. You can also check out the testimonials from our students.
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