"Today's events have broken the charts, but I suspect Wall St. will not accept the losses represented by today's gap and there's still some question as to whether or not we see a head fake/false or failed breakout as the SPX daily chart has the MOST obvious resistance line in the most watched index with a concept that occurs (normally) about 80% of the time before a trend reversal... I believe a gap fill is the most probable outcome.
I would encourage you to start worrying less about the very near term intraday or day to day trade, and start focussing on the longer term trend positioning as represented in today's earlier post, Important Trend Market Update
This is the second Pro Sentiment (leading) Indicator used for stronger confirmation. Intraday today it has been leading the SPX, pointing to a gap fill or perhaps even a head fake move
SPY 3 min with a relative positive divegrence suggesting some attempt in to early next week to fill the gap from today, possibly more if there's a stronger base built, but the market is in a very dangerous spot right now based on the trend and signals.
QQQ 3 min calls the negative divergences at the top areas well, in fact despite the unexpected events this morning/overnight, the chart looks as if it called the move perfect and has a very small, short term positive divegrence at the intraday flameout lows (capable of supporting a Monday Gap fill).
The EXACT same can be said for the leading negative IWM 2 min, as I have been saying, anything beyond 1 min has been very ugly and as of 2-days ago, started forecasting the market well on an intraday basis as well despite being deeply dislocated. The leading negative divegrence of the last 2 previous days (Wed./Thurs.) which were also Bearish Candlestick Reversals, called today's move perfectly.
Again, there's a small intraday positive divegrence at the flameout lows of the day this afternoon (suggesting an early bounce next week).
DIA 2 min is both leading negative and then positive at this afternoon's flameout lows which were also an intraday head fake/stop run below intraday support levels. Again, like most everything else, it points to some early strength next week.
Intraday IWM 1 min showing a leading positive divegrence in to the close and at the Flame-out lows of the day. This argues for the market to pick up where it left off on Monday with price strength based on this leading positive intraday 1 min divergence, however the larger trend doesn't tell us anything even close. In fact, quite the opposite.
This is obviously a very bearish relationship, but it's also a strong 1-day oversold relationship and most commonly we see a short term oversold bounce the next day or so.
Of the 9 S&P sectors, ALL NINE WERE RED. Utilities were the best performer at -0.36% and Consumer Discretionary lagged at -1.48%.Of the 238 Morningstar groups, 226 were red. (This too is a strong 1-day oversold condition based on breadth)
Only 11 Dow stocks remain above their 50-day moving average, only 1010 (just about half) of the Russell 2000 are above their 50-day.
Overall, the market is at a deep 1-day oversold point so our forward looking analysis for early next week doesn't look so far off, a 1-day oversold bounce and INCREASED VOLATILITY sounds very reasonable here, that should be an excellent entry for positions, options/puts, etc.