US equities opened moderately higher to an early peak of sp'1950, but then increasingly spiralled lower, settling -48pts @ 1890 (intra low @ 1886). The two leaders - Trans/R2K, settled lower by -3.7% and -3.3% respectively. With the failure of the 1900 threshold to hold, the door is open to the 1750/25 zone.
*closing hour action: a vain attempt to re-take the sp'1900 threshold, but failing
I have adjusted the fib' retrace on the hourly chart.... but considering the GIANT bearish engulfing candle on the daily cycle... hopes of renewed upside are largely vapourised.
I want to make it clear....
I see ZERO reason to be on the long side, especially holding overnight/across the coming 3 day weekend, as there is HIGH risk of a giant gap lower.
Worse case in the coming days.. the market implodes to the 1750/25 zone.
.. and were that the case.. even I would then consider buying.
In terms of a market short.. right now, 1960/80s are now 'best case'.... and were a turn to occur, that would likely drag out into FOMC week.
more later... on the VIX