Bearish Outlook With Next Bounce Near $274-278
Very simple chart. Things are going wild right now in the market and playing daily options may result in you getting burned. The Fed has shown with their unlimited QE that they are willing to do what's necessary to prop up our markets. That said, looking at the extremely low volume the past week, you can see everytime there is an influx in volume, the ticket begins trending down. I stated in a previous post how the resistance at $294 was going to be the turnaround point, although I will admit I didn't suspect the second double top to occur. That said, if you played had I mentioned with some long-dated Puts, you'd be swimming in cash right now.
This move down is a clear indication the .68 Fib level held as expected and the market is pulling back now. This will continue to happen until we reach the next support zone which is looking like won't come until we reach the .5 Fib retracement level. I will need to spend the day watching price movement to see if a buying opportunity will be present, but that will be the next buy-zone to watch for. If this leg down is a violent one, it's very much a possibility we dive through this zone with enormous volume.
For now, shorting to this area should be a relatively safe play to scalp some profit. Hope this chart gets more exposure than my last!
This move down is a clear indication the .68 Fib level held as expected and the market is pulling back now. This will continue to happen until we reach the next support zone which is looking like won't come until we reach the .5 Fib retracement level. I will need to spend the day watching price movement to see if a buying opportunity will be present, but that will be the next buy-zone to watch for. If this leg down is a violent one, it's very much a possibility we dive through this zone with enormous volume.
For now, shorting to this area should be a relatively safe play to scalp some profit. Hope this chart gets more exposure than my last!
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