Today is Wednesday June 30th and the markets had a little follow through to the sell off.
We saw the Dow shed around 95 points and the S&P -9 points for a continuation of the move short from 1066. There is more to go on the down side and have clearly broken and remain short under the 1042 area. I see 1006 or so in the S&P in the days ahead with a corresponding price of 9500 or so on the Dow. Currently the S&P futures are at 1025 and the Dow 9774.
Yesterday, I updated the daily charts and told my subscribers that same information about the continued sell-off. The natural flow of this market should take us down to the levels mentioned above. This continuation sell-off, started from the trigger point I mentioned after putting in the inside day from Mondays market. That trigger point is the number 1066. We did not get the short term rally I was looking for, but said, we needed to watch both sides of the market and should use 1066 as a trigger point for more selling. That number was hit in the premarket and we were in full sell mode on Tuesdays open.
The sentiment numbers came out and they did not budge, which says there is more selling to come before it gets into an oversold extreme scenario. A reading of 35% bullish will give the market power to move up. That is a minority position taken by investment newsletter writers who write for the subscribing public, who are invariably wrong more times than not.
Currently the numbers are 41.4 bullish. With another week of selling and downside pressure I will bet, this will be the trigger. It is funny how the market and the sentiment numbers will wait for each other to get in sync. We are seeing that played out now. We will get a pretty big trade-able bounce off of the lower levels mentioned, or at least that is what I now be looking for.
I did get up early here on the West Coast and trade on the open. My results are posted in the screen shot below. I took 9 trades with most of them split trades and racked up a bunch of points. I only had 1 point of total loss broken up into two .50 point losses on the S&P emini futures. I have some notes on my screen showing a thing or two, so feel free to check it out. (click two times to blow the chart up)
Anyone with questions please feel free to email me, I will be glad to answer. Until next time, Good Trading. Vince
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Tags: continuation sell-off, Sell Off Stock Market, trigger point
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