SPY went down over 1.8% and DOW down over 2%, and I’m not excited? Well, if I wanted I could but I wasn’t about to kid myself. On the surface, yes the market was down big, but as far as I am concerned, this was simply an opportunity for the bulls to unwind and consolidation before the rally onto the 200 day MA. The market gapped down within yesterday’s range but never back tested the gap. The volume was low. And SPY was between the 50 and 200 day MA’s. This price action didn’t allow me to add to my short positions nor did it allow me to exit. It was frustrating.
Note the Fib 76.4 level once again did its magic today. It stopped the selling.
- 119.71 – the 50 MA on the SPY 60 minute chart
- 119.30 – the 50 MA on the SPY daily chart
- 119.02 – the Fib 23.60 retracement of the recent low/high
Then, we’ll have to hang tight for the bulls’ attach on the 200 day MA test at 123.69.
Portfolio Value: $133,300