“Jackknife in your sweaty hands.” Hey Bulldog, The Beatles
In 33 trading days the SPX lost 1312 points or apx 21%.
Monday the Chinese stock market experienced its worst single day crash since 2008.
Yes you could say we’re in the heart of panic.
Remarkably, 1310 squares-out with/points to April 7th for a square-out of the range.
Notice that there were never more than 2 consecutive higher daily highs through the entire swoon.
And that only happened twice.
This is the very definition of a fast move.
According to the talking heads that puts the market in Bear Market territory.
NOW it’s in Bear Market territory.
Whew, that’s good to know. I’d better lighten up on my positions.
AAPL struck a low of 174.62 down from 250.
But now we know
“It’s a Bear”
Thanks guys.
From its 260 December 26th high, a cuve out of 540 degrees down is 172.
AAPL hit 174.62 on Monday.
April 26th is 90 degrees/days from December 26th.
Let’s see if AAPL has bottomed and is testing the 172 region in late April.
In sum, Black Monday fears were overwhelmed by the Three Day Rule…just like on August 5fth, 2024.
Despite Cramer warning on Friday that those who fish for lows Monday will sleep with the fishes we were buying stocks like TSLA and SPOT near the open as the SPX came within a fraction of a full test of its January 2022 peak.
In addition to the square-out of the range shown above, yesterday, April 7 squares out with 480 (4800).
We got close enough for government work. Literally.
What a coincidence the little bombshell that Trump was considering a pause with some countries as the SPX sunk. The market exploded from its deeply oversold condition
But the While House denial caused the market to pullback after a 400 point spike in 40 minutes, but after backing and filling all day, the SPX rallied again late in the session carving out a mini intraday Cup and Handle.
We felt the Hulk may be in the wings with a face ripper. He delivered an 8% rally that caught fire after an up ORB and a continuation Jump the Creek buy signal
Notice the backing and filling following the surge found triple support at the level of the Opening Range Breakout (ORB).
Futes are up sharply tonight as I write.
Is this part of a dead cat bounce or bull dog out for vengeance?
We know that there were 10% rally days in the midst of the 1929 crash and the 2020 Covid Crash.
The early SPX spike struck 5246. (according to my data).
Remarkably 5260 is 540 degrees up.
We must clear 5116 which is 360 degrees up to get there.
Judging by the futes overnight we will open above 5116.
These are the levels on our radar today.
It looks like 5260 is magnetizing the market higher overnight.
If the SPX can clear and hold above 5260 it will open the door higher.
That said we are still in the Gann Panic Zone this week and a drive to 5260 will
Turn up the Daily Swing Chart (trade above a prior day’s high).
The gap window of Friday’s massive down gap starts at 5275. And gets closed at 5396.
The overhead 20 hour moving average is pointing straight down since April 3rd and resides at 5155.
That is the upside pivot.