Well, that’s not what I expected. My TQQQ & TNA got creamed. Because these are both small positions, the dollar loss is not so bad. I will wait until I see how things go tomorrow before I decide what to do. By sometime tomorrow, the RSI’s on the 60min chart of QQQ & IWM will dip below 30 and this should bring about an upward reaction at some time during the session, or famous last words.
We had another 90% down day and the $TRIN closed at 2.94 and so these two are showing extreme oversold. $SPXA50R dropped below 25 so it is showing oversold, as well. Unfortunately everything else I track is in the neutral zone and that is no help.
Perhaps I’m putting too much importance on tomorrow’s action, but I think tomorrow is going to be the tell. We either rally tomorrow and take back a huge chunk of today’s losses or the party’s over for this dead cat bounce and it’s time to seek high ground and wait for the waters to recede.
I’m still looking at all this volatility and the action over the past few weeks as a bottoming process, but if market dynamics have truly flipped from bearish to bullish, then the bulls should have no trouble changing the course tomorrow, though maybe not at the open.