Get Ready For Some Fun #SPX Market Recap/Video
I go over all of this in the video report in the links below.
The bears took it too the bulls in early trading. But once the 200 dma was tested and then broken, the bulls decided to try and fight and brought price back above the panic line. Rallies are allowed and I wouldn't be surprised to see the bulls try tomorrow. But when we are in this type of pattern "Woody Dorsey's Kill Zone and Black Hole" often the market doesn't let the bulls out or the bears in. This is a very rare pattern and when it kicks in, whether we bounce first or not, it will surprise many how fast we fall.
I am not calling for a 50% drop in the spx from here. I personally think that is just nonsense and if we are in a bear market for the next 3-5 years, there will be a lot of points made trading the long side. Sentiment will give us a clue when to cover shorts and if history is our guide, the majority will be shorting with both hands at that low. They become the fuel for short squeezes. But in a bear market, these bounces will be fast, but fail at important resistance levels. But the crazy part, we will see the majority switch from bearish to bullish and that is when the short term top will kick in. Even if you are correct on your direction, the market will make you think you are wrong-and why so many lose money, even when right our their direction. Take thing one swing at a time and forget about 3-5 year picture-it is useless. G-
The bears took it too the bulls in early trading. But once the 200 dma was tested and then broken, the bulls decided to try and fight and brought price back above the panic line. Rallies are allowed and I wouldn't be surprised to see the bulls try tomorrow. But when we are in this type of pattern "Woody Dorsey's Kill Zone and Black Hole" often the market doesn't let the bulls out or the bears in. This is a very rare pattern and when it kicks in, whether we bounce first or not, it will surprise many how fast we fall.
I am not calling for a 50% drop in the spx from here. I personally think that is just nonsense and if we are in a bear market for the next 3-5 years, there will be a lot of points made trading the long side. Sentiment will give us a clue when to cover shorts and if history is our guide, the majority will be shorting with both hands at that low. They become the fuel for short squeezes. But in a bear market, these bounces will be fast, but fail at important resistance levels. But the crazy part, we will see the majority switch from bearish to bullish and that is when the short term top will kick in. Even if you are correct on your direction, the market will make you think you are wrong-and why so many lose money, even when right our their direction. Take thing one swing at a time and forget about 3-5 year picture-it is useless. G-
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