Good Morning,The S&P was down 2.45% on a breakaway gap down at the open that led the bulls down and they lost key support levels. We finally broke out of the consolidation at $390 which I have been telling everyone would be the sell signal for the next leg down in the market, which should bring us down to close the gap at $381to start. Volume has been much heavier as we sell off and we should fill that gap quickly as it looks like the reason we saw so much heavy sellingin the Dark Pool on names like NVDA and KLACC, we are starting to see massive sellingin Charles Schwab as rumors circulate about serious compliance issues at the companythat could take them down hard over the next 6-12 months. Schwab is in our long term Short Portfolio because there is a chance this takes a little while to unravel before the streetcrushes Charles Schwab like the cock roach they are. Going back to SPY. This looks like a double top rejection from SPY $408 with the breakdown below $390. critical support. The bears are in full control, there is a real possibility that the selling will pick up below $381 we should go back and test the lows bounce and go lower over time.to the upside the bulls have to get through $393, $396, and $402 resistance to have a change at keeping the dying bull alive but I believe we are about to go Full bear and capitulation is coming. I don’t say this to scare anyone but be prepared because if the price action is saying what i believe it’s saying we are headed a lot lower. SHORT NVDA and any High Beta tech name like KLAC and LRCX,.
QQQ: The Triple QQQ’s also lost critical support at $280. While we are below QQQ $280it also looks like a Double Top rejection from the Bear Market resistance at $293 and we are now breaking down from bullish support at $280. We should go down to fill the gap at $268if we fill that gap the next support comes in at $260. The Bulls need to get above $280 and $288 which does not look likely.
We have Triple Witching today so it’s gonna be a wild one!!!
Cheers,G. Allan Collins
