Stock Charts: Markets Put in a Large Wash Out Day

$SPX Daily:  Yesterday I said that's not how a market puts in a bottom.  Today could be a bottom of some kind.  It looked like a big watch out day by opening deeply lower today but rallying back to a small gain.  Do we get a bounce?  I'm looking for one of two options to play out.  The first is a small bounce in the near future, something that stays below or tests the 200 day MA, and then price pressures into a new low.  In this view, we could get a little push lower and then a bounce, but the concept is the same.  The second is a big bounce, something that pushes past the resistance line in red and indicates the bulls have regained the market.  After a steep fall, it's the bounce that tells us more than anything else.

$CPC Daily 5 EMA:  We finally have this price at extreme levels with the MACD close to over bought.  We might be close to a bottom in the market, but there's room to support a new low in the market even if we bounce.

The Risk Chart:  Interesting the risk chart did not make a new low with the market's push into a brief low!

My Watch List:  The past week and a half I've never been this busy, so I really don't have anything I'm watching to trade, which ironically has worked out well for us because the risk in active trading lately is very high.  I've said it before, Mr. Market has done a great job at disguising itself the past several weeks.  Mapping out what looked to be a large wedge structure, then selling off hard this week, in that, there may have been a truncated high too.  For now, I'm not that excited about trading because I want to see lower risk set ups and I don't want to get on the wrong side of the next 300 point move in the market.

From My Trading Desk:  No trades.

Happy Trading.

J.D. Rosendahl, Rosey