The down day materialized

The potential for a good down day as I wrote about this weekend materialized and the S&P 500 broke down through the last meaningful bottom.

The volume was not that great as shown by the histogram below representing one day per bar.

So, we do not have large sellers yet and we do not have an environment that tells me that we have a bottom in place. The market is falling because we cannot find any large buyers and trading money is pushing the market down.

By taking out the bottom at 2585 from the 23rd of March the minimum requirements for the wave-(v) bottom is fulfilled so I took profits in the last part of my S&P 500 Bear Put Spread and I have a few put option positions on in IBM and CAT which I established about two weeks ago to capture the longer term decline. The wave count above is the one I am tracking as my main count but I also see a potential for the following count.

The count above is much more bullish and I am watching the action today closely to see if the break to the downside from yesterday gets any legs!

Stay safe in the markets!

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