Since we are at the Mercy of the market and are delayed a bit behind the SPY. I expect a nice strong open tomorrow morning. Spy went on a heater the last 5 mins and had a big 60 cent buy. We closed right on a support as well as the bottom of the channel we have been following. As I see it we should see a gap up and start to make our ascent upwards. If this happens our worst case scenario should see at least a 25% recovery tomorrow from the previous drop. That would put us around 8.12. However I believe the next potential stop is the 100 hour MA at 8.25 followed by the top of our channel at 8.40.
Worst case scenario is we drop at open. Look for it to bounce somewhere in the 7.70 range. As is it looks like we have a bottom however here. I am not too worried about a stop loss. I would set it for a break of 7.60.
Worst case scenario is we drop at open. Look for it to bounce somewhere in the 7.70 range. As is it looks like we have a bottom however here. I am not too worried about a stop loss. I would set it for a break of 7.60.