More indepth analysis at 11:20 AM CDT
A few more thoughts here to add to our earlier post today.
We have seen a major technical breakout in the early trade today, but be aware that the CNBC crowd is investing most of their energy this morning into where to buy for the next rally. This is a dangerous setup for the market as all the paper profits from the manipulation trades since late March makes traders feel invulnerable.
What was the August 7 Apex all about.
To me it was about the fact that the rally from the March lows had a lot of leverage built into it, options, futures, etc. A point came when traders realized that they had better reckon with the leverage factor. This is why headwinds have been hit in all financial sectors, stocks, gold, bonds, oil, etc. So far all traders have done is add less leverage, no one has sold out to any extent.
Stock Price levels:
I see the following levels as key:
S&P 3250 current
3225 minor support
3104 (200 day average – 5 % from here)
2900 (first ledge support -11 % from here)
Nasdaq 100 10825 current
10675 minor support
9528 (200 day support – 12% from here)
8900 (first ledge support -18 % from here)