$SPX 60 Minute: I'm still working from the idea that we are looking for a near term bottom. The bottom wedge line and either price support in blue make for a possible place for that to happen.
$SPX Daily: Price stuck in No Man's Land between short term support and resistance lines. Cluster support below consists of the 200 day MA, lower BB and the price support lines. We are so close we should expect a firm test of that zone in the near future.
$SPX Weekly Non Log: This time frame is still dominating price. At just above 1,230 is the uptrend line and price support. That too makes for an ideal place for a near term bottom.
$RLX: The retail index is still probing for a low testing prior price support and the 200 day MA. Next zone is the bottom wedge line and lower BB, which I think we test before we bounce.
XLF: We had that little bounce and price reversed. We still have gaps and price support that should be tested if the market is still searching for a low, which seems like the case.
SMH: Still looking for an end to C! We should test the 200 day MA and the prior low as part of that process.
IBM: Price has grinded down to minor price support.
JNK: Yesterday's low volume bounce was insignificant. We have a couple of support levels we could test soon.
AAPL: Price is testing cluster support now. Below the first black line could allow for price to fall to the second black line.
$VIX: This was easily the most interesting chart of the daily because it finally broke above the congestion zone of the prior few weeks. Does this push higher represent some panic selling in the market to finish a near term low? That's what we should be watching near term. The RSI has room to support higher price which support the market pushing lower!
The Risk Chart: Here we have the risk chart. I'm using this to tie into the comments on the $VIX. A little panic selling in the stock markets would be evident with a spike in the $VIX. The last several times we saw that happen and we put in a near term bottom, we saw the risk chart dip below the lower BB. That didn't mean an absolute bottom in all cases but it did coincide with a near term bottom in all of the last three cases. So, we should be watching for a little panic selling soon, unless today was it, which I doubt! If we get it, then the market should push below price support on my daily chart above.
My Watch List: What's interesting is there are few bearish patterns because things have only just turned over, and a bounce is needed to create bearish patterns. That makes short side trading a little more challenging because it requires trading off momentum, divergences, technical indicators, support and trend lines, combined with what Mr. Market is doing. That said, I still have few trading ideas.
NFLX: Price fell with everything else today and I have a support box in red where I think price will move towards next. Below that zone and the bearish gains momentum.
From My Trading Desk: I'm still keeping it light. I did short NFLX again today and if it opens down or tests that support box, I will close for a gain. Since I think we need a little panic selling and testing of price support levels on the daily chart, but we could put in a near bottom when that happens, I don't want to be overly short on stocks. I'm sticking with a couple trades and keeping it light and short in time. If I'm wrong and we've put in a major top, I want price action to confirm that by accelerating to the downside in the near future.
Happy Trading
J.D. Rosendahl, Rosey