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S&P near critical 2700/2690 zone: Selling with a vengeance

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#1 dTraderB



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Posted 28 February 2018 - 10:11 PM

It's down after-hours, low 2704 as I write this at 10:04 pm EST


Every rally yesterday and today were sold and the dam burst this afternoon when  S&P 27342 was breached. 


Looks like we will see &P 2500 before 2800.  

 BARRON'S had a good explanation for the selling: 


Don’t Say We Didn’t Warn You: Dow Tumbles 380 Points as Selling Returns With a Vengeance
Ben Levisohn and
Teresa Rivas
Updated Feb. 28, 2018 9:02 p.m. ET


"Let's chalk it up to sentiment. After the market dropped nearly 300 points yesterday, I quipped that corrections don't end as easily as this one appeared to. And I stand by that. I asked Instinet's Frank Cappelleri what he thought was going on, and he says we're seeing clusters of large, daily moves, something that had been absent for a long while. And it doesn't matter whether the moves are up or down, the big moves signal both emotion and volatility. "Until that changes, I would expect the price action to remain acute," Cappelleri says. "From an intraday viewpoint, this means we should expect both late-day surges or purges to persist."

But what if it's something more than that? Sundial Capital Research's Jason Goepfert notes that this is the first time since December 2015 that the S&P 500 has gained 1% or more for two straight days only to drop 1% or more on each of the next two days. That doesn't happen very often, just 23 times since 1928. Here's the rub: "All but 3 of them occurred during bear markets," Goepfert writes. "Because it tended to occur in downtrends, future returns were poor, with declines over the next 30 days 65% of the time averaging -1.9%," Goepfert writes.

Don't say we didn't warn you."




#2 Dex



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Posted 01 March 2018 - 01:13 AM

Bloomberg TV did a good story pointing out that breath is poor. 

"The secret of life is honesty and fair dealing. If you can fake that, you've got it made. "

#3 K Wave

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Posted 01 March 2018 - 10:07 AM

Watch AMZN here...


held 1500 first time down....if that pivot just made fails to hold later on today, things could start to unwind fast.....

#4 dTraderB



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Posted 01 March 2018 - 11:02 AM

Wild swings in market - daily range pf 32 so far in S&P.

That 2690/2700 zone is the major defense against a deep & rapid decline. 

50-ma zone 2732/36 is first major resistance.


VIX above 20

#5 dTraderB



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Posted 01 March 2018 - 12:57 PM

Lows of the previous 6 5-min bars in the 2690-2700 support zone

Will it hold or break ?