An interesting day to open a new week
What an interesting day to start out this week. Interesting as long as you weren't long US equities, that is. Pre open looked relatively positive, but things went down hill from there, prompting some nice waterfall action around 1:30 pm. This chart is the 5 minute bars in SPY - Notice the abrupt spike in volume as the market starts unloading everything in sight.
Just when you thought it was time to breathe and maybe buy, you would gotten skewered by the falling knife. Equities managed a somewhat steadier march to close from there, but this was pretty ugly action for the bulls. True to form, I tried to make the best of it and entered a long position near the close. If you've ever read here before, you know I consider -100 dow a big time signal to buy at the close, and we got pretty close to that for a while.
My convictions aren't strong about where this market is going next, but that is not my bag. I never know where the overall market is going next, and I would humbly submit that those who say they do are probably just fooling themselves. Regardless, I wouldn't be surprised to see some bounce back at the open tomorrow.