The market had another strong day of selling but does this mean that there is more to come? I'm not convinced yet until we break the lows which on the QQQ's was $50. It's not uncommon for markets and stocks to retest lows after heavy rounds of selling. Retests aren't a sign of weakness but actually could be a sign of strength. Why is that? If the market or stock trys to break lower and fails then it shows that there is strong support in that area with alot of buyers. That actually could provide a great opportunity to add to a position with a tighter risk since your stop should be at the low of the closest pivot.
So far the QQQ's have failed to break above the last red bar and has failed to break the $50 low so we are still in a sideways range. Support and Resistance triggers are marked with arrows.
I still have an upside bias but we play the market waves so which ever way the market breaks is where we will position ourselves. If these lows break I believe we could see some pretty heavy selling but I would prefer to see a bounce first before entering any new shorts.
Right now the smart thing to do is look for plays to add to my long term portfolio. When markets get hit hard it's always a good idea to update the shopping list.
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