Today is Tuesday, May 4th and the markets dropped like a rock today.
That was the general theme for the day, down she goes. Yesterday I mentioned that I thought this drop was going to come on Wednesday, a day late, but did mention that we needed to watch 1182 on the S&P futures. If that got taken out, it was going to tell us a lot about the markets intentions, is what I said. I was also watching Fridays high, but that never came into the picture because the market drop started well into the night trading.
The 1182 got taken out and we saw for a session low today of 1164. Overall, the market was down 26 points at 2.36%. The Dow was off 225 and 2% with the NASDAQ coming in as the biggest looser at minus 3%.
Where do we go from here? Well, it does look like there can easily be more downside, so I would keep that as the likely directional play, but I would bet we will see some backing and filling also, giving opportunities on both sides for day traders. Traders should give the market a little time to let itself be revealed and the picture will become clear as to direction. I do see support in the daily charts coming in around S&P 1145 for rest of this week. I can’t say for sure that it is going to get there, but it very easily could. I will be watching that area if in-fact we do drop down to that level for a bounce at least short term.
I just took a few trades today and have them in a video below if you care to see, but for those short on time I scaled out of a couple of trades for a modest daily goal in the middle of the session. I do show some potential signals and trades in my T-2 trade model. I have stripped everything else off the screen but a couple of indicators, one above and one below. I don’t say what they are but they are a small piece of the total on how I see and trade the markets.
I am going to keep my post short today, but will have some trading idea’s and or lessons in the rest of my posts this week, so stay tuned and check it out.
Related posts:
- Thursday’s August 17th Market Drop Coming
- Red Alert, Large Stock Market Drop Approaching
- Big drop in the market today
- Another Big Drop for Markets
Tags: backing and filling, market drop, S&P 1145
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