#stocks #crash #crude #aapl #amzn #fb #nflx #googl Monday's rally made it up to 3 points shy of the lower edge of my target range before failing miserably. I was surprised at the failure to even reach 2,816, but not by the subsequent decline.
Put simply, this is very bad action for the bulls - profound weakness in what is supposed to be a seasonally strong period of time.
This morning, I'm watching crude oil carefully. If it manages to hold above $50.51, it may take off to the upside and move towards my target range of $58 - $64. If that occurs, the equity indices could get a modest tailwind.
The move for stocks is to sell rallies for the time being. Sell troublesome longs on a bounce to 2,720 and look to short on an extended rally to 2,750. The downside target for this down phase - after you sell bounces - will be 2,530 on the S&P futures.