Wow, what a day!
Yesterday, in our pre-market Morning Report, we made a call to short the Nasdaq Futures (/NQ) if they failed to hold 6,700 and fail they did as we got a massive 200-point drop which paid us $20 per point per contract for $4,000 per contract same-day gains on the Futures – you're welcome! Our oil shorts also did nicely, racking up additional $1,500 per contract gains on the day as we pulled back from $69 to $67.50. This is why we take Monday's off now – we can make plenty of money on Tuesdays!
This morning we'll be looking for bounces but failing to hold the weak bounce lines will likely signal more pain ahead and, don't forget, we were already expecting a big move down on Thursday so this may be an early start to a proper 5% correction. I ran the numbers for our Members in yesterday's Live Chat Room into the close (3:40):
2,685 to 2,620 is 65 points so 13 points is 2,633 (weak), which is right where we failed.
24,600 to 23,800 is 800 points (wow) but I'll call it 150-point bounces to 23,950 and 24,100:
6,700 failed to 6,475 so 225 gives us 45-point bounces but call them 50 so 6,525 (weak) and 6,575 (strong)