A gap down on Quad-Witch? The FED must be panicking. After hitting all-time high's yesterday (once again), SPY is seeing some heavy selling pressure here in the first 30 minutes of Quad-Witch, along with the rest of the US majors, which are down about .3%. The intraday bearish harmonic appears to have broken, and we're now back to a 369 handle, just north of the 50 period MA on the hourly. On the daily, our first major support is around 366, then the 21 day EMA at 364.93, and the recent low/bottom of the ascending channel from Nov 9-10th, around 362.
I'm expecting to see some fireworks today during power hour in particular, and potentially see the Vix break above 25 into the close. This could pave a short path to 32. I'll be watching the Put/Call ratio closely for signs of a breakout, and a clear shift in sentiment (back to reality). The megaphone is still in play on the monthly, and if an outside reversal candle does emerge by EOY, the bulls are in serious trouble.
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