geotrader@gmail.com

 2 days ago
Buyin calls for Monday……POSTED FRIDAY :)

Yes, see the replies I just made to the two comments above in this thread, as well as the first post I made in pre-market today regarding QQQ & SOXX. Sitting tight to see the day unfold, both intraday (quite a few decent resistance levels now overhead on the intraday (5-60 minute) charts, following the recent drop.. how will the market act on backtest of those levels, and how will it close today? (as well as SOXX).

Your guess is as good a mine but I want to see how the market (SPY & QQQ) close today as well as SOXX (back above or below the primary uptrend line it took out on Friday.

False breakdowns are often followed by strong moves in the opposite direction so if SOXX happens to close solidly back above the uptrend line, that could be the catalyst for a rally that could last days or possibly even weeks. Should it close back below the trendline, especially on news that the shutdown is likely to end this week, that would be quite bearish IMO & will most likely be followed by more downside into the end of the week & quite likely beyond.

I explicitly stated in one of the videos Friday that with the breakdown on SOXX, I believe it warranted going home short. So far, with the news of the gov’t shutdown, the market is poised to gap up, but again, I was crystal clear on that on Friday. See the update I just posted today (Mon) in pre-mkt as to my thoughts now. Basically, waiting to see how the market trades & especially how it closes today as SOXX will either remain on a sell signal following Friday’s trendline break or close back above it, making that a false breakdown/whipsaw.