A gap down significantly below the Sell Signal level. A brief look at 2635 and then strong selling in a very choppy decline to 2600 as the market continues to look for a low or series of new lows.
Entry when significantly below the Sell Signal level can lead to additional risk as the market chops heavily about, reacting to the sudden drop in price.
A Sell signal is still active today and if the market can stabilise and start to move higher, above the S/T channel would be a Buy Signal with the caution that it might take several attempts to stop the selling behaviour and turn the market and the S/T channel upwards.
First we need to see a low, in place. If that occurred on Friday we will need to see trade above Friday's high for a believable recovery. If not we will continue to see an investigation of lower prices and a continuation of choppy and confusing action.
Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.