Today’s market action was very predictable. With 3 support confluence lines, it’s no wonder that we bounced. Those three lines were the 50 MA, support at 159.80 (looking at SPY) and then the bottom trend line. All we have for resistance is the upper short term trend line. All that being said, there is no guarantee we will continue to bounce, but I think odds are in favor of the bulls, if not tomorrow, then on Monday.
There isn’t a whole lot else to say about the overall market. The DIA is in a similar situation as SPY and I am leaning towards both rebounding tomorrow.
For my positions, I am still in BBBY short (1 contract) and I also got into CAT (1 contract) short. I am down 15% and 2%, respectively. I have tightened my stops, but my final decision on my stops will come from pre-market prices.