Double Dose!

As De Niro would say, the markets are experiencing a “Double Dose” of selling, at least for now. With yesterdays significant down day, it should come to no surprise for most of us intra-day traders that further selling should be expected. Yesterday was a very damaging day for the Bulls as the market wiped-out three days of gains on very heavy volume. In my viewpoint, the market has looked very vulnerable since the top in May. The SPY’s have been making a series of Lower Lows and Lower Highs signifying a downtrend. The only problem is that we are still technically in an uptrend. I would like to see the 130.00 level (Daily Pivot) taken out on a closing basis before the market picks up steam to the downside.

If / Then scenario’s

If we crack 130.00 on a closing basis / Then look for the daily 200 ma (126.00) as a potential target.

If we trade down to 130.00 and hold the level / Then look for a retracement to 132.00 for a possible Sell setup.