S&P and Nasdaq Set Up For Big Loss Tomorrow
When I see markets edge back to a big reversal low, then the set up is for a panic collapse once the lows get taken out, which seems inevitable for the Nasdaq and S&P. Tomorrow could be a rough day. Bulls can try and cling on to the generally light volume in the selling to the lows.
In the case of the Nasdaq, all technicals are negative and an already weak relative performance is accelerating lower. February was a 'death cross' between 50-day and 200-day MAs and this is marking the long term trend lower.
The S&P is likewise pressuring the low of the 'bear trap', but unlike the Nasdaq it's doing so on higher volume selling. Today's action also marked the start of a 'death cross' between 50-day and 200-day MAs - is this just the start of a larger trend lower.
You've now read my opinion, next read Douglas' blog.
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