S&P 500: -4.30%
Nasdaq Comp.: -5.28%
Russell 2000: -5.42%
Crazy weeks folks! but it was a beauty. As trend traders we live for these times where you have an easy discernable/tradeable trend. This past year since dec 2011 we had a 4 month uptrend. a 1 month distribution cycle and now a very nice stage 4 downtrend. so 5 out of 6 months we have had an easy trend. Either the market goes up everyday or down everyday! There is big money to be made in downtrends as stocks take stairsteps to go up but ELEVATORS to go down! Thats what we are seeing now
We have a quiet week on data so europe will be front and center. We also have a g8 summit. The market will be reacting to comments that come out of there. Any pledge on flooding money, easing, etc could potentially spart a bounce. (it would have to be something strong…anything that sounds weak or just bandaid will lead to more selling)
The gameplan this week is to watch the 30min chart on the spx and look for signs of reversal.. If we get a light bounce to 1320 or so then more selling should come. If we take out spx 1330-1340 with some gusto then we might have some legs here. In the absence of news I will treat this market guilty till proven innocent and will be fading bounces.
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