This is an extremely wild day, and one that I didn’t see unfolding in the way that it did. But let’s be honest, I don’t think anyone saw that aggressive of a gap fill playing out today. But it did. 

And that is why, as traders, we have to always be on our toes to react accordingly to the whims of the market. As it stands now, I am long on this market and looking for another challenge of that 1947 level. If that price barrier breaks then you should see a bigger move to 1990. 

As for the Weekly SPRI below, it appears undeterred by the recent rejection at 1947 and the sell-off this morning and is still pushing towards the extreme reading and leaves that head and shoulders pattern unconfirmed on SPX.

Here’s the SPRI:

shareplanner reversal indicator 2-25-16 weekly

You Might Like

  • South Korea and its impact on the US stock market.

    South Korea: The Hidden Driver of US Tech Volatility

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped