SPY was down 1.16% today and closed a 442.89 as expected we filled the gap and we closed below the 50 Day Moving average as expected. I mentioned the other day that Spy would follow the QQQ and close below the 50 Day moving average after the Triple Q’s broke support, and reversed the trend to a new Down-Trend and closed below the 50 day moving average that the Triple Q’s would lead and SPY would follow. We have one last resistance level at SPY 441 and if we break 441 to the downside the next stop should be the low 430’s. Bears will face resistance at 445.59 and 448.28 and the only way I can see us changing course, would be a break above 452, I have to cater to the bulls’ dreams, but it does not seem likely at this point. Institutions and insiders already started dumping and should continue until we see SPY 430.
The NASDAQ 100 QQQ was down 1.06% yesterday and closed at 366.42.
Expect Continued sell off. Stay Short, the Bulls are about to realize they held on a little too long this time.
G. Allan Collins