SPY had a small gap down open and filled the gap before dumping much of the day. We saw a brief pause at my red trendline before bears took back over and dumped past it. The hidden bullish RSI & MACD divergence I pointed out are likely to be negated tomorrow; losing 268.49 will negate that divergence. Today eclipsed yesterday's volume by 30%, giving us the 4th highest volume day since 2016 (the other three larger volume days were in the February 2018 dump). The daily is starting to look like a volume climax. We are now at historical daily RSI bounce levels. RSI is currently 17.38; this is the lowest it's been since 16.9 on Aug 25th 2015 and 16.7 on Aug 11 2011.
Looking at the hourly chart you can see where the dump paused at my red trendline trying to hold it as support before continuing on down to dump. We did see a nice oversold bounce play out at the end of the day on a particularly aggressive dump, and we're now seeing some regular bullish divergence shaping up wither lower lows on the hourly and higher highs on the oscillators.
I am expecting a bounce to play out very soon, and I am expecting to lose that 268.49 support in a flush just ahead of the bounce. That's not too important to me - in instances like this I look for the new support level formed form the low of this sell-off.
We're approaching a point where people are starting to look at stocks as being on sale, and are starting to scale into positions for their longer term retirement portfolios. Just remember to have a plan for scaling in, and to exit in case things get really ugly.
For anybody looking at any stock keep an eye on the market. The correlation of every individual name and sector to the overrall market is real and the market saw an all-out dump today, having now given back over 3 months of gains in the past week.
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.
Looking at the hourly chart you can see where the dump paused at my red trendline trying to hold it as support before continuing on down to dump. We did see a nice oversold bounce play out at the end of the day on a particularly aggressive dump, and we're now seeing some regular bullish divergence shaping up wither lower lows on the hourly and higher highs on the oscillators.
I am expecting a bounce to play out very soon, and I am expecting to lose that 268.49 support in a flush just ahead of the bounce. That's not too important to me - in instances like this I look for the new support level formed form the low of this sell-off.
We're approaching a point where people are starting to look at stocks as being on sale, and are starting to scale into positions for their longer term retirement portfolios. Just remember to have a plan for scaling in, and to exit in case things get really ugly.
For anybody looking at any stock keep an eye on the market. The correlation of every individual name and sector to the overrall market is real and the market saw an all-out dump today, having now given back over 3 months of gains in the past week.
By the way, I do analysis on the entire sector across all the mj charts I publish. If you're not looking at all the names I talk about, you're not getting the full sector-wide analysis. Follow me to get updates when I publish ideas and pay attention to the mj names you typically don't look at too, so you can stay in the know and get the full picture.