Try Our Unique Premium Service Free For 30 Days

TTP Trading has one of the most unique trading services available today as members have access to not one, but two traders, CJ Agresta of Trust The Process Trading and Greg Krupinski of GK Trading. Both traders use a similar methodology as swing to position traders as they look to capture shorter term swing gains with a portion of their trades while trying to capture longer trend following gains on the balance of their positions. TTP Trading has one of the most comprehensive services available as well. Aside from receiving real-time stock alerts, members receive thorough reviews each evening of the action in the major indices and detailed reviews of each open position. Additionally, members also receive a comprehensive weekend letter that includes a detailed chart review of the major indices in preparation for the coming week. Members also receive a 15-20 minute chart video each weekend highlighting new potential trading opportunities as well as a Morning Note laying out the Trading Plan for the day that includes any possible actionable trade ideas we are looking at. Greg runs a hypothetical $50,000 trading portfolio for intermediate to advanced traders who are looking to be more active, while CJ runs a smaller $25,000 hypothetical portfolio that newer traders with smaller accounts will be able to keep pace with. Follow each trader separately, or use the information in tandem as each of our traders use a very similar methodology. Go to http://www.ttptrading.com now to receive a 30 day free trial membership. See you there!

Weekly Market Prep For 12/10 $SPY $QQQ $IWM $COMPQX #trading #stocks #indices

 

MARKET GAUGE- Uptrend Under Pressure

OVERVIEW- Thursdays intraday reversal that gave the bulls some hope that the worst of the correction may be over, was crushed on Friday as the major indices turned right back around and tallied large losses. Action in some individual leading stocks during Thursdays session showed some promise, but many turned right back around on Friday and more recent breakouts continue to fail. Technically, by definition, the recently confirmed uptrend that printed on 11/28 is still alive, but contextually and practically, the indices appear to be in the early stages of a bear market. As I have stated many times, bull markets live above their 50 day moving averages and bear markets trend below them, and while the two most recent confirmed rally attempts briefly pierced back above that line, they were quickly rejected and once again are swimming beneath the current. The only beacon of light from Fridays session was that the major indices did not print a distribution day, but that is not much solace for the bulls at this point. It is easy at times like this to throw around wild predictions of what may lie ahead, but here we will continue assess the landscape from day to day. If there is one thing for sure in the markets, it’s that things can change quickly, so traders should continue to stay alert, nimble, flexible and prepared. Now, let’s take our weekend run thru the index charts.

SPY- Shortly after confirming a new uptrend on 11/28, the S&P 500 ETF quickly ran up through its 50 and 200 day EMA’s and challenged its prior breakout level near $280 giving bulls hope that the correction lows have been put in. However, that positive action was quickly squashed with three straight days of losses. Thursdays reversal of early losses that flowed thru on Tuesdays nasty day, gave traders some hope that a floor may have been put in place, but after trading slightly higher early Friday, the index trended lower all day closing near the lows of the day. It’s hard to imagine at this point that the correction lows just below $260 will not be tested, and if that level fails to hold, the 2018 first quarter low hit back in February near $253 is up next. Until the index can remount and hold above the 50 day EMA, a bear market case remains in place.

NASDAQ- The Nasdaq Composite also made a run at its 50 and 200 day EMA’s, but it too was quickly thrown back. Interestingly, these two moving averages crossed bearishly just before the confirmed rally, however this widely followed technical “death cross” can sometimes be a lagging indicator during a correction (this hasn’t proven to be the case in the Russell 2000). That said, we can clearly see that the last three rally attempts dating back to mid October have printed lower highs confirming the recent downtrend. We will be watching to see if the 6800 level on the index contains any further downside, if not, the February lows near 6630 come into play. Again here, the bearish view continues until we can remount the 50 day EMA.

QQQ- The Nasdaq 100 led to the downside on Friday with a 3.30% loss and like the S&P 500 is now in the process of printing a bearish cross of the 50 and 200 day moving averages. It too has printed a series of lower highs and FANG stocks, which have carried the index for some time, look very much broken a this point. Corrections in FB, NFLX and GOOG began up to three months before the October decline began in the major indices and if there is any doubt that bear markets live below their 50 day moving averages, one only needs to look to FB for an example.

IWM- The Russell 2000 staged a bearish cross of the 50 and 200 day EMA’s over a month ago and have not recovered since. Small caps were out in front of the correction in the major indices, and perhaps bulls can hope that they signal a bottom in the major indices by bouncing at a longer term support level they are currently visiting, but the jury is still out on that optimistic perspective. The index has not seriously threatened its moving averages since its decline got underway in earnest in October, and has been trending below the 50 day EMA for just over two months.

 

Weekly Market Prep For 12/3 $SPY $QQQ $IWM $COMPQX #stocks #markets #trading

 

MARKET GAUGE- Confirmed Uptrend

OVERVIEW- The major indices posted their best weekly gains for 2018 and this helped flip our Market Gauge to “Confirmed Uptrend.” An initial rally attempt on Thanksgiving Eve was followed by a confirming follow thru on Wednesday as the major indices registered gains of over 2% on an increase in trading volume. It was good to see another potential market rally may be underway, but the indices still have some technical obstacles sitting close in front of them if they want to press higher. The recent rallies that have helped spur the markets have been primarily news driven, including the reaction to the mid-terms, Fed Chair Powell’s comments on interest rate policy and even speculation on a positive outcome in the China trade battle as President Trump meets with China President Xi Jinping this weekend. We would much prefer the market to be responding to institutional buying spurred by company earnings, and although we have begun to see some of this more recently, we will need to see much more if this market wants to challenge its old highs. Newly confirmed rallies are not guarantees of success ,as we saw earlier in the month when the 11/7 follow thru ultimately failed when the Nasdaq Composite undercut its corrective lows, but they are normally a necessary starting point. More importantly, we have to keep index behavior in context. Our ultimate barometer for our trading is the holdings in our portfolio and the continued behavior of leading stocks in the market along with a continued increase of quality stocks breaking out of soundly formed bases. Now, let’s take our weekend run thru the four indices we cover here.

SPY- The S&P 500 ETF is arguably in the best shape of the group however, the recent follow thru day (marked with a blue arrow) ran right into a confluence of technical obstacles including its 50 and 200 day EMA’s as well as a two month downtrend that began when the index topped in early October. The index did start the process fighting its way thru by breaking above the trendline with a 0.61% gain on Friday on solid turnover. Should the index overcome these near term obstacles, some serious horizontal resistance near $280, and the overhead supply sitting just above, would present the next big challenge. The good news so far is that the index has not yet marked a distribution day since the follow thru. Newly confirmed rallies marked by immediate distribution days can turn suspect quickly. There is another view of the current technical set up that I think should be on traders radar screen. When markets or individual stocks top and correct, we can draw in a Fibonacci retracement grid on the chart ranging from the market top down to the corrective lows, focusing primarily on the 61.8% and 78.6% retracement areas, as this zone can sometimes mark the last rally attempt before an index, or stock roll over in earnest. For now we can continue, as always, to monitor the landscape day to day with open mindedness and flexibility.

NASDAQ- As with most corrections, growth stocks have taken the biggest hit and the index that contains them has a further climb back to glory than the S&P 500 however, their recoveries could be equally swift and strong. The Nasdaq Composite sits with a set of similar circumstances with layers of technical resistance close in front of it. Like the SPY, it too was able to crawl back above the two month downtrend line on Friday, but a challenge of the two moving averages, which have recently executed a bearish crossover, still lies ahead. We have drawn in a Fibonacci retracement grid here as well that interestingly shows the 61.8% retracement sitting in conjunction with the top of horizontal resistance near the key 7600 level, which  marked the previous breakout in June.

QQQ- As we can see by now, all three indices are portraying a similar theme, but the one thing that stands out is that the key 61.8% Fibonacci retracement level sits right in line with the former breakout area of each index. It will be very interesting going forward to see how this scenario plays out.

IWM- The small cap Russell 2000, which endured the brunt of the correction, has pretty much recovered in lock step with the other indices recently. It too is currently challenging the two month downtrend line from the October top, but I will be watching how the index responds if, and when it approaches the 50 day EMA. Bull markets live above their 50 day moving averages and bear markets live below them, so it will be interesting to see if the clear bearish crossover of the 50 day and 200 day EMA’s near the end of October signaled an end to the bull market in small caps, or if it was a lagging indicator of a correction that has already run its course.

That’s all for now. I will see you tomorrow for what should be an interesting Weekend Trading Review video. Until then, enjoy your Saturday!

 

 

Weekly Market Prep For 11/26 $SPY $IWM $QQQ $COMPQX #trading #stocks #indices

MARKET GAUGE- Market in Correction

OVERVIEW- The market remains in correction following the 11/7 failed follow thru as former leading stocks continue to breakdown. All major indices are swimming far beneath their 200 day moving averages, and as a result, this will likely lead to continued volatility in the near term. The current list of the top 20 performing industry groups continue to be littered with many historically defensive names, and until we see some new market leaders emerge in more growth oriented groups, it will be extremely difficult for the market to gain much ground. Much technical damage has been done during this recent correction leaving the indices with much overhead supply to overcome with any potential rally attempt. That said, we never know what the future holds and new market rallies can spring out of nowhere, so traders should continue to monitor the indices and keep a list of stocks that are acting relatively well. In particular, traders should keep watch of what individual groups are showing the most relative strength as new market leaders are likely to emerge from these groups. However, until we see another follow thru day in the major indices, traders should continue to hoard cash and trade with extreme caution. In the meantime, remember that bull markets live above their 50 day moving averages while bear markets live below them, so traders should watch this key moving average going forward. Now, lets take a look at the four major indices we track here.

SPY- Our S&P 500 ETF gapped down severely on Tuesday and the ensuing, lightly traded holiday sessions were unable to result in much of a rally attempt. The ETF seems to be caught in no mans land between the correction lows and resistance that is setting up again in the $268-$270 area. It looks more and more like the index want to revisit and test those lows, which I do agree is a strong possibility, however, many traders are expecting this action with some type of capitulation day to the downside before any new uptrend can emerge. I would warn that the market often does not line up with the traditional expectations of its participants, so keep an open mind and be ready to maintain an unbiased flexibility in any environment. There is no guarantee that the index will test the lows, nor is there any guarantee those lows will provide the expected support many traders are expecting should they be revisited.

NASDAQ- A somewhat similar story for the Nasdaq Composite as two potential support/resistance zones are currently set up between 6800 and 7000. Another bearish development traders may be eyeing is the moving average crossover setting up on the chart. We saw this same type of action in the Russell 2000 back in late October. However, while these “death crosses” are something to note, they should only be used as one piece to the puzzle when analyzing the market landscape. These crossovers can end up being somewhat of a lagging indicator at times with an index marking intermediate to longer term lows not too long after they show up on the chart. I will also be watching the 7000 level closely, as these big round numbers can often become technical obstacles for indices.

QQQ- The Nasdaq 100 finished the week virtually on a level of support near $159. If the index were to give up this level the next layer of support would come in between $150-$154. On the upside, the $169-$170 level and the declining 50 and 200 day EMA’s are lining up to be formidable resistance on any rally attempt. The handful of former market leaders that hold such a heavy weighting in this index that helped propel it on the way up, will likely hold it down until some new leadership can emerge.

IWM- The Russell 2000 lead this correction, but unlike the Nasdaq, it has not gone down to test its correction lows and in fact, the index had the best relative performance this week of the four we track here. The index looks like it may have some long term support not too far below the market, but a break of that level would be an additional and extremely bearish development. Since this index was the first to break, I will be watching with interest to see if any relative strength here may be a precursor to a general recovery of the entire market.

$LPSN Classic Head & Shoulder Top #trading #stocks

Short trades can be much more difficult and should be handled with care, but occasionally good set ups in the right general market conditions can be rewarding. We alerted members on 11/15 of a possible short trade opportunity in $LPSN. We were able to take swing gains on half our position of 8% rather quickly and have moved our stop to breakeven on the remaining portion of the trade in hopes of capturing additional gains. We invite you to come and join our premium group at http://www.ttptrading.com See you there!

lpsn

Weekly Market Prep For 11/19 $SPY $IWM $QQQ $COMPQX #trading #stocks #indices

MARKET GAUGE- The 11/7 Follow Thru Uptrend Confirmation Still Remains Under Pressure.

OVERVIEW: A tumultuous week of trading came to an end with the indices gaining some footing after a rough start. A large drop on Monday was followed up with some more selling on Wednesday, but the indices stood their ground late in the week despite some poor earnings from Semiconductor giant Nvidia (NVDA) on Thursday evening. It was good to see the indices fight off that bad news from the former market leader, but the recently confirmed market uptrend still remains under pressure. The late week recovery was still not enough to lift the indices into the green for the week as they all finished in the red led by the Nasdaq Composite which traded lower by 2.15% for the week. Many traders have been looking for the strong seasonality pattern to develop and although there is still time as we officially roll into the holiday season next week, some retail sectors such as Apparel, Specialty Retail, and Department Stores that would perhaps lead the charge in what has been a strong economy, have not acted very well recently. The final chapter for 2018 has not been written yet and the recent follow thru confirmation may end up to be nothing more than a retracement in a new longer term downtrend, or the beginning of a sideways chop that frustrates traders for an extended period of time. For the time being, we still recommend members trade from a cautionary stance, limiting their risk while keeping cash levels higher than normal, but as always remain flexible and prepared as market conditions can change quickly. Remember however, that leading individual stocks in the market and the stocks in your portfolio are your ultimate barometer for your trading. Now, let’s take our weekend run thru the four indices we track here and see where we stand heading into the holiday shortened week.

SPY- The S&P 500 ETF finished the week down 1.45% but found some support on Thursday at an area we highlighted earlier in the week near $268. The late week recovery came on solid volume, but the November monthly options expiration accounted for some of this. On the upside, any advance faces three layers of resistance, the first near $275 which aligns with the 200 day EMA, the second at a declining 50 day EMA near $278 and the third at former support that has turned into major resistance near $280. On the downside, should we break thru the $268 area, the possibility exists for a retest of the October lows near $260. We are heading into a holiday shortened week of trading which may lead to lower trading volumes as the week progresses and because of this we may not get a good read of where we are ultimately headed. The ETF already sits with three distribution days on the books since our follow thru confirmation further muddying the picture of an already pressured uptrend confirmation.

NASDAQ- The tech heavy Nasdaq Composite has taken the brunt of the recent correction as it sits just over 11% off its all-time highs compared to the S&P 500 which is currently down less than 7% from its highs. This is not much out of the ordinary as growth stocks will take the biggest hits during market corrections. The index is in a similar predicament to the S&P 500 but sits much further below its 200 day EMA and the 50 day EMA is catching up to the 200 day quickly setting up a possible crossing of the two EMA’s that bulls would rather not see. These two now down sloping moving averages, along with major horizontal resistance between 7500 and 7600, present formidable obstacles for any further advance. On the downside, traders can watch for round number support at 7000 or a retest of the correction lows near 6922. One positive development since the 11/7 follow thru is that we have booked only one distribution day.

QQQ- This week we are going to take a quick look at the Nasdaq 100 on a slightly longer term weekly chart to gain some perspective. Here we can see that the longer term trend, dating back nearly 2 1/2 years, was decisively broken in mid-October, but what sticks out much more to me on this chart is the heavy volume on the weekly declines dating back to mid-summer of 2018. Eight of the 21 weeks, or nearly 40%, have marked distribution in the index highlighted by the extreme volume spikes in October that marked the start of the current correction. On the upside, the Q’s could see some resistance near $170 and then $175. Any renewed selling effort that would undercut the Thursday lows could bring a test of the correction lows near $160. The daily chart shows three distribution days since the 11/7 follow thru confirmation.

IWM- The small cap Russell 2000 has been painting a more bearish picture since the correction began. Its 50 day EMA has been in a clear downward trajectory for over a month now and we have seen the two major averages make a bearish cross as we entered the month of November. Its a long climb back for the index with plenty of overhead supply and if the index continues to track below the 50 day EMA I will consider it in a bear market despite the conventional definition. The Russell also sits with three days of distribution on the books.

 

Weekly Market Prep For 11/12 $SPY $QQQ $IWM $COMPXQ #trading #stocks #indices #markets

MARKET GAUGE- Confirmed Uptrend

OVERVIEW- The major indices confirmed an attempted rally that started on 10/30 Wednesday by rallying over 2% on an increase in trading volume. It remains to be seen how much traction this rally receives but I think its important to note a few things. Firstly, the market high of September marks a top and a possible change trend until that high is taken out. So, in spite of the newly confirmed uptrend we have to consider we may possibly have new longer to intermediate term trend in place as all signals should be taken seriously. Secondly, we are in a historically positive seasonality period that may help propel this recent rally into the end of the year. Lastly, we also have to recognize that these V-shaped recoveries that print on the charts can be hard to sustain on a shorter term basis. Furthermore, these recoveries are running into some important support/resistance zones on the charts. As usual, the market prints a grey area for traders to navigate thru and as a result they should continue to monitor the health of the general market on a daily and weekly basis, as we do here, while also paying close attention to the action of individual leading stocks. Although our Market Gauge is in “Confirmed Uptrend” mode we feel it would be prudent for bullish traders to get long slowly until the indices prove themselves further, rather than jumping in with both feet. Now, let’s take our weekend run thru the four index charts we monitor here.

SPY- Our confirmed follow thru signal on Wednesday sent the S&P 500 ETF right up into an important support/resistance zone near the $280 level that dates back to March of this year. This V-Shaped recovery that is marked on the chart below traveled over 8% off the corrective lows, registered on 10/29, in just seven sessions. This is a large move in a short period of time and these sharp retracements can be hard to sustain without some type of consolidation over the shorter term, especially as they run into prior support resistance zones on the charts. I think the next couple weeks will prove to be very interesting as positive seasonality may be enough to push prices higher, however, many bears lick their chops when they see these type of set ups on the charts. With a confirmed uptrend in place we will now monitor distribution days in the volume pane and we can see that the ETF did register its first day of distribution of this rally on Friday. Occasional distribution days are normal and acceptable until they start to mount to 5-7 days within a 20-25 session period which would start to put us in a cautionary stance. It is also important to note that distribution days that register quickly on the heels of newly confirmed rallies can raise the odds of failure. Confirmed uptrend or not, cautionary trading may still be the best route into the end of the year.

NASDAQ- The Nasdaq Composite underperformed on Friday losing 1.65%, however if we were to overlay these two charts on top of each other one would be hard pressed to tell the difference. Both charts are challenged by their 50 and 200 day EMA’s as they trade up into resistance areas. The congestion zone for the Composite is a bit wider than that of the S&P 500 ETF ranging from near 7500 to about 7630. Interestingly, the Nasdaq did not register a distribution day while the three other indices we cover here did, which is important because distribution days in close proximity to follow thru days raise the failure rate of newly confirmed uptrends.

QQQ- The Nasdaq 100 rallied hard on Wednesdays follow thru session blasting thru the 200 day EMA and trading right up to the 50 day EMA. This is an interesting area for the index as the 50 day EMA is running concurrently with a major support/resistance zone near $175. Once again we have a sharp V-shaped retracement rally that printed on the chart with plenty of overhead resistance to work thru. The 100 did register a distribution session on Friday as well and closed right on the 200 day EMA after slashing thru it intraday.

IWM- The underperforming Small Cap ETF has been staging a fierce recovery of its own after a nasty decline of over 16% in a short period of time. The index is facing an area of resistance near $160 with plenty of overhead supply above that level that could possibly plague the index down the road. The index also sports an extra bearish development on the charts that the others don’t in the form of a bearish moving cross over of the 200 day and 50 day EMA’s. The index did register a distribution day on Friday in a rather ugly session with a loss of 1.85%. A heavy challenge lies ahead for this index.

 

Weekly Market Prep For 11/5 $SPY $QQQ $IWM $COMPXQ #trading #indices #stocks

MARKET GAUGE: Market in Correction

OVERVIEW- The markets are still a dangerous place to play as the indices continue to work their way thru the current correction. However, if you don’t get out over your ski’s trying to guess at bottoms, and only take what you feel are quality set ups long, or short that fit your methodology, with lower than normal risk, and sit with a high percentage of cash in your account, perhaps you can weather the storm. This weeks recovery attempt stalled on Friday, but the indices are still in a position to capture a confirming follow thru in the coming days. Friday was day four off an attempted rally, which is the first day we look for a confirming follow thru, we didn’t get that on Friday, but we will be watching in the coming days for a signal that a new uptrend could be confirmed with a rally of over 1% in the major indices on an increase in trading volume. We are entering a statistically positive seasonality period which may be a bit of a tail wind in such an effort however, if the market can’t stabilize or rally in this scenario, that could flash a negative sign going forward. In the end nobody knows where we are headed so all we can do is monitor the indices for clues as to the underlying health of the market. For now a possible low may be in place but the markets are still technically scared and we need to wait for confirmation that the current correction has run its course. Let’s take our weekly look at the charts where we will see there is still planet of work to do for the bulls.

SPY- The ETF registered a nice week gaining 2.47% but stalled on Friday after being rejected at the 200 day EMA. Although we don’t officially track index distribution days when we are not in a confirmed uptrend we do note that Fridays trading activity did pick up over Thursdays level marking a distribution session. We also note that the Tuesday thru Tuesday rally saw a decrease in volume each subsequent day. All that being said, the indices are still in position to follow thru on the current rally attempt as long as they do not undercut their most recent 10/29 lows. Current resistance sits in front of us right at the 200 day EMA and if the ETF can retake that line more resistance may sit not too far above that near the $280 level.

NASDAQ- The Nasdaq Composite also fared well for the week with a gain of 2.65% but was also turned back right at the 200 day EMA. Some heavy resistance may lie not far above as the index is in the neighborhood of some tri-lateral resistance with the first obstacle being that 200 day EMA. However, also on the horizon is some formidable horizontal resistance between 7500 and 7650 and that area is also converging with a descending 50 day EMA line.

QQQ- The Nasdaq 100, which was actually the first of the major indices we track here to close back above the 200 day EMA, didn’t fare quite as well this week on a relative basis with a gain of 1.65% and turned in the worst performance on Friday with a loss of 1.56%. Turnover on Friday was noticeable higher over the previous session and price closed right back below the 200 day EMA. If the index can retake this moving average the next line of resistance sits not to far above near $175.

IWM- The much maligned small caps were the only index we cover here to finish in the green on Friday with a gain of 0.33%, but more impressively turned in a stellar week returning 4.5%. This makes for the fourth straight day of gains for the Russell 2000 as it tries to fend of a bearish cross of the 50 and 200 day EMA. This may be nothing more than a sharp retracement in a downward trend for the index, or mark the turning point of a nasty correction. Only time will tell.

That’s all for this weekend. See you all on Monday!

Weekly Market Prep For 10/29 $SPY $QQQ $IWM $COMPQX #trading #markets #stocks

MARKET GAUGE:  Market in Correction

OVERVIEW: The major indices undercut their Wednesday lows canceling out Thursdays attempted rally. We now wait for another rally attempt and a confirmation of that rally that may indicate a new uptrend is in place. Unfortunately, a lot of technical damage has been done to this point and there is no guarantee that even a confirmed rally will carry us back to new highs, however, new uptrends rarely start without a initial rally and follow thru confirmation. Until then, we suggest higher cash levels, limited activity, and lower than normal position sizing if putting on new trades. Times like this can be challenging enough for veteran traders, let alone newer traders. Traders must try hard to resist migrating away from their systems and methodologies trying to conform them to the current environment. If you are  a trend trader, you can not suddenly decide you are a day trader. If you are a swing trader, you have to resist the urge to become a longer term position trader because certain stock are “on sale” or “trading at a big discount to their long term value.” Sure, as you gain years and  years of experience you may add a new trick or two to your trading arsenal, but these new tactics should be used infrequently and should never replace your core methodology. Trying to change your trading style as markets go thru inevitable cycles is usually a recipe for disaster. Your first and most important goal as a trader should be to protect your inventory, that being your trading capital. Without inventory you are out of business. You don’t always need to be firing off trades to be a successful trader. The most successful traders have sitting power, or patience to wait until things line up in their favor. While other traders are scrambling around trying to make a few bucks with every tick, learn to sit back and survey the playing field until things line up with your methodology. Now let’s move on to the index charts.

SPY- Thursdays rally attempt was short circuited by Fridays decline that undercut Wednesdays lows as volume swelled once again. The index has plenty of work to do just to regain the 200 day EMA and price now sits near the middle of two support resistance zones roughly between $280 and $253 that could possible define a trading range into the future. Of coursed we never know for sure where we are headed so we take things one day at a time waiting for the market to clue us in to where we may be headed. Traders should resist the urge to pick a bottom and I would suggest turning the volume down on CNBC and look at the market that is in front of you.

NASDAQ- The Nasdaq Composite likewise undercut the Wednesday lows putting bulls in search of another initial rally attempt. Unlike the S&P 500 the index is still clinging to gains for 2018 but they are becoming thin. I have overlaid possible support and resistance zones here as well for the index and a further trip down into that lower zone should it materialize would wipe out what gains are left for the year. Traders should continue to monitor index action closely and approach each day with an open mind.

QQQ- A rough session by Amazon (AMZN) that saw the behemoth loss nearly 8% helped the Nasdaq 100 turn in the worst performance of the day Friday as the index lost over 2.5%. The index had a slight edge over the others heading into Fridays session in regards to its proximity to the 200 day EMA but that melted away with Fridays losses. Volume levels as highlighted below have been extraordinary here during this current sell-off and any accelerated selling moving down to the next major support levels highlighted on the chart represent another 6-9% downside for the index. Hopefully a bottom is confirmed much sooner.

IWM- The small cap Russell 2000 was actually the best performing index on the day losing only about 1%. The index is approaching a major support level represented by the February lows near $142.50 but at the same time is developing a bearish technical development with the 50 day EMA approaching the 200 day EMA. This is a bearish signal known as a death cross however we shouldn’t overweight these types indicators and rely primarily on price and volume action. The index is now down over 16% from the September top and will have plenty of work to do to repair itself but first must find a viable bottom.