Good Morning Spy Gapped up on Friday and then we went Red and took out the June intraday low. We have closed below that level twice now.
Our risk level is now $365.86 which is the previous June low there is a gap to fill at $373.50 I believe we will see capitulation if we stay below the June lows much longer. We either bounce our capitulation is coming and I think capitulation is coming soon.
QQQ- The QQQ’s also closed very oversold but we didn’t close below the June low of $271.36 resistance will be $280 and $285.
Support is at $267.50 and then $258 is the capitulation number. If we make it down to $258 it will not be pretty.
The Vixx has been ripping up over 7% on Friday, going over $30 on the VIXX is usually a bearish sign. IF we get to the $38 -$40 zone we will capitulate
Bottom line: We will get a bounce and then I think we will go a lot lower.
Look for support at $24 on ^Vix
Cheers,
G. Allan Collins
