Good Afternoon,
We are in cash because we are a little bit oversold technically but it is looking more and more like the bear scenario is playing out. You can use 370 on the QQQ as your risk level. Stay short until we break through resistance, nothing goes in a straight line but if we do continue to break down, we well trade a lot lower quickly, keep in mind the bulls have critical support on QQQ at the breakout level back at 420. Volume is very heavy as there has been pretty big institutional selling. Again There’s support at 427 which we bounced off earlier today. Then there’s support at 425.20, 423 and 420. SPY Resistance is up at 432.46 and last trade on SPY just now was 426.50 down 0.83 % intraday so far.
QQQ is currently down .94% on heavy volume as well last trade was 359.88. Same as The SPY it looks like the Bear scenario is playing out.
The Russel 2000 is down 1.5% on the day which looks like we are getting panic selling and capitulation.
Watch the VIX, if we close over 20 and stay up above 20 for more than a day or two, that will be a good indicator of where the stock market is headed.
Cheers,
G. Allan Collins
