A sizeable decline took place yesterday, yet all it did was take the 500 index down to the support level at 1,300.
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Two days ago I highlighted that the NDX 100 was up against a negative looking pattern, as it was “kissing the underside” of resistance, a pattern that can be very frustrating for those that are long and a great set up for those that are willing to “score on defense!” (see post here) Since that time not only has the broad market declined, the NDX has show to be weaker than the broad market/S&P 500.
If further downside action is to take place, support at (1) has to be taken out! Will be looking at several positions to score on defense if a breakdown starts! Only broad market inverse position owned right now is PSQ.