All charts on Momentum Monday are powered by MarketSmith
The stock market has been in a free fall as of late. Last week, we saw a major acceleration in the selloff. Ever since the S&P 500 lost 2600, the selling has been relentless. Market breadth has reached deeply oversold levels that are seen very rarely. Sentiment is getting more bearish by the minute. These conditions have historically led to two outcomes:
- A 10-15% counter-trend bounce;
- Flash crash.
The first is more likely than the second, but the second is not impossible.
In today’s show, we go over the price action in SPY, QQQ, AAPL, HYG, USO, AMZN, FB, among many others.
Happy Holidays!
Check out my latest book: Swing Trading with Options – How to trade big trends for big profits.
