Looking for slightly higher tomorrow as NDX and SOX ram into first target zones.
After that, we will have to see how things act.
But if they blow through those zones, say NDX took out 8200 (8150-70ish area looks very important to longer term), then those shorts that have been building up could start to actually panic, and buyers come back at the same time, and it could turn into a crazy rebound like we just witnessed in Gold. 1 min TVIX chart looks like today was just day 1 of possible multi-day "crash" type wave there. So if it crashes back down under 100, market will likely move up strongly.
Hard to believe stock market could move like that, but not ruling anything out in this environment.
Rubber band got pulled way back, and the "news" that pulled it back appears to be improving rapidly with Trillions coming down the pipe...
If we do stall out just a bit higher, then would be looking for down Wednesday, and see what kind of damage happened there before re-assessing.
I am still in the camp that we just saw the fastest bear market in history, and the SOX and NDX will provide the lead out to new all time highs in the fastest recovery in history.
But I always have a Plan B, and if price action does not support a strong continuing up move out of last weeks swing low, then will be open to looking at bearish side of things if key levels do not hold on any decline.
For overnight, looking for YM 22K area to hold on a pulback.
Edited by K Wave, 06 April 2020 - 11:08 PM.