Hello All,

Last week when we first saw the bearish reversal about to occur we put out 3 support levels that could be respected but noted that if they gave way, $270.00 would be in the crosshairs.  We finally hit and surpassed $270.00 in the SPYs yesterday.

The low yesterday was barely above a FIB level or two, and they managed to cling to $270.00 which helps at least delay more technical selling.

Many “leadership” stocks are deeply oversold at this point and we’ve seen a nice drop since last week’s 2-HR double top.  NOW probably requires us to pay close attention to what’s happening.  An oversold rally can’t be ruled out nor can a close below that key level of $270.00 so stay on guard.  A full on retest of the lowest low could still occur so no rest for the weary.

As for our stocks, be cautious when volatility ratchets up as it has, and keep an eye out on intraday charts if needed (due to volatility picking up).

More when warranted!

Thanks,

Wayne