The wild swings today felt like riding a rollercoaster ride...
Today was a great day to be a day trader, but swing traders were probably sweating bullets. I remained calm and didn't close out my short position until the end of the day. It's hard to say what tomorrow will bring, but more selling is coming, before we have a large rally back up.
The charts are telling me that we could actually gap down again tomorrow, as both the 60 minute and 15 minute charts are now pointing down. However, I do believe there will be a short bounce in the morning, as dip buyers and day traders speculate on big move back up.
Will it happen? I doubt it... but a bounce of some degree is still likely. The close was at a double bottom from the afterhours low put in Monday night. That's another reason I expect a small bounce. Light volume throughout the day is also another reason to expect a bounce in the morning.
But, make not mistake about it... this market is very bearish right now, and I do expect more selling tomorrow and Thursday. I think the next 2 days could but in a lower low, with some panic selling once we break the double bottom area around 104 spy.
So, not a long post today. If you are short, I'd stay short, unless you are trying to swing/day trade a little like myself. I only did so because I didn't like the position I was in. I plan to get a better position tomorrow. Again, the market is very bearish right now, and bounces can be shorted... until we put in a lower low. Then I expect a nice rally up for a week or so. After that... well that's for another post.