Thanks for the response

Nice analysis/charting. That could very well be the case & certainly worth monitoring going forward. Thx for sharing.

@shaul, both @swingisking & @hafstjl06 are correct; While I have highlighted some potential developments (potential bounce off the initial tag of those supports on SPY & QQQ yesterday as well as the small positive divergences on the index futures), I have also made it very clear in recent videos that the recent price action, including the bearish engulfing candles on the daily charts that were put in on Tuesday followed by confirmation of those potential topping (trend reversing) candles with follow-thru red candles on both SPY & QQQ yesterday, helps to support the case for the SPY swing short.

I had also made clear in one or more of the recent videos that while we may get another relatively small & quick bounce like we had yesterday morning, even if I trade that bounce long in my active trading account that I will remain short the major indexes in my swing & trend trading accounts (IRA’s, etc..).

I do my best to differentiate the very short-term (hours to days) outlook for the market from the intermediate-term (weeks) & long-term (months to years), especially in the videos.

You’re confusing different time periods. One can be bullish short term, bearish intermediate term, and bullish long term, or any other combination.

Randy expects this bounce to be temporary due to the positive divergence on the short term charts. If you waited a couple weeks, you can wait a couple more and hopefully it’ll pay off. He is not recommendation offloading shorts for a swing trader. I’m sitting tight on my shorts and will likely add to them at resistance.

Thank you for validating my bias towards the downside haha

Really frustrating, sitting on shorts for a couple of weeks raising the Stop loss and now that the declines have started getting recommendations to sell because the upward corrections need to come up …

I should add that as of now, SPY is still holding & trading just above the 278.93 support with QQQ just above the 217ish support so the case for a bounce still can’t be ruled out just yet.

I’m seeing this question now (8:19 am Thursday) and will add that since last night’s update, the stock futures continued to consolidate around those same support levels they hit & traded on for the remainder of the day yesterday. As such, it appears that the likely reaction off those levels has proved to be a reaction more so in time than in price as although there was a bounce, it was minimal. As such, it looks like the indexes might take a run down to the next support/target levels but pre-market session moves are usually either reversed or built on shortly after the regular session opening bell.

With that being said, to answer your question, if we do bounce then likely resistance levels on SPY are 283.90 then 286.60 with R on QQQ around 220.55 then 222.50.

283, maybe to 289. I doubt we get back the the 50% fib, But I think we challenge support and not resistance. Wishful thinking, maybe.