Larry McMillan of trading-advisory firm McMillan Analysis on Friday said, “Markets are in total disarray. I traded through the crash of ’87 and through the financial crisis of 2008, and this is worse.”
So far SPY has bounced from channel support. But today's limit down #ES futures, despite FED's cutting interest rates to zero and announcing a $700B QE program, does not augur well for market stability. A 50% retrace like in 2008-09 will drop $SPY down to 170!! There are support zones on the way to 170 and time will tell what levels institutions step in to support the markets.
So far SPY has bounced from channel support. But today's limit down #ES futures, despite FED's cutting interest rates to zero and announcing a $700B QE program, does not augur well for market stability. A 50% retrace like in 2008-09 will drop $SPY down to 170!! There are support zones on the way to 170 and time will tell what levels institutions step in to support the markets.