Telegram Trading

Key Algorithm Calculated S&P 500 Support Levels:  4250 (MEDIUM) / 4240 (MEDIUM) / 4220 (LARGE) / 4200 (MEDIUM)

Key Algorithm Calculated S&P 500 Resistance Levels:  4380 (MEDIUM) / 4360 (SMALL) / 4300 (SMALL) / 4300 (SMALL)

Assessment: The market is short term oversold. So a bounce would be expected. However, market crashes typically occur when the market is oversold. The market is oversold, people expect a bounce, when one doesn’t happen then panic sets in and everyone runs for the exits. Obviously that is a possibility, but crashes are not frequent occurrences. I closed my SDS and a bearish position in the FMA because the S&P seemed to find support at 4235 and then regained 4250. Those would be the key levels to watch today. As I discussed yesterday afternoon, I would love to see a gap fill bounce and then for the market to tank once again. I think that second leg of selling would be more aggressive as people realize the market isn’t going to regain the uptrend. Let’s see what today brings. If we get a bounce, I will be looking to short the bounce (pending the technicals and algorithm assessment of the bounce). Good luck in your trades!