24 Aug 2015 - Not Quite Black And Blue Monday

Was today expected?  Of course, it had to happen.  Maybe not expected to this day, but it was coming nonetheless.  I do not think this is over yet, and boy was today a gift if you were long and were able to get out on this rally.  Those who sold near the bottom might have lost money, but I would not sweat it.  You know the trend and all you need to do is follow it.  If you are not convinced before, hopefully you will be now.

The bears who followed the signal from the ST a few days ago can now rest a bit easy since there is a good spread on their profits regardless of the rally, but they should still be on their toes since this is a volatile market.

Since this is an OS market, the risk of an acceleration down is high, and holding the short position is a low risk proposition.  Of course depending on which time frame you use, you would need to watch an exit of any OS condition to signal your trade.

MT: DOWN
ST: DOWN
PA: DOWN

Note: Notice how prices in the SPX could not even close above 1900.  I would give this 3 days to try to close above 1900, if it does not then you will have your answer as to the next move.

BONUS:  Notice the 200 day moving average position before the breakdown in price occurred.  Price have been supported at the 2070 level even before the 200 day moving average reached this level.  When it did, price decided it was good enough to turn down.  Lets keep this in mind for the future.