SPY Gap Down is imminent
Going to keep this one short and sweet. We are all struggling to identify this market and make the right entries. With bailouts and economic relief coming in at never-before-seen levels before and businesses still closed for the most part, Q1 is not going to treat anybody well this year. There is ample evidence of further downturn in the market which is leaning me away from the Fed being able to prop up the markets much longer.
The list goes on and on. We're seeing now SPY gap down last night from a major resistance point and indicators are showing major support won't come until we reach that 260-265 level. It's also keen to point out we've now gone under 50 RSI which has been a pretty solid indicator of movement to come, one way or the other.
With many overvalued tech stocks taking a plunge today and further unemployment numbers expected to be dreadful Thursday, I suspect we're in for another leg down here. Even with the PPP small business loans set to receive another massive amount of government funding, this has been expected for a few weeks now and leads me to believe this added funding is already priced in.
Volume is extremely low right now which has me watching currently. I'll be sitting on cash ready to open some short positions once I see an uptick in volume odownward but without a perfectly timed Fed injection into the market, I think this leg down could get violent.
- VIX is on the rise
- Gold continues to drop
- Oil is damn near bottomed out and could see further downturn with the massive stores countries are trying to offload
The list goes on and on. We're seeing now SPY gap down last night from a major resistance point and indicators are showing major support won't come until we reach that 260-265 level. It's also keen to point out we've now gone under 50 RSI which has been a pretty solid indicator of movement to come, one way or the other.
With many overvalued tech stocks taking a plunge today and further unemployment numbers expected to be dreadful Thursday, I suspect we're in for another leg down here. Even with the PPP small business loans set to receive another massive amount of government funding, this has been expected for a few weeks now and leads me to believe this added funding is already priced in.
Volume is extremely low right now which has me watching currently. I'll be sitting on cash ready to open some short positions once I see an uptick in volume odownward but without a perfectly timed Fed injection into the market, I think this leg down could get violent.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.