By Markus Heitkoetter
It was another down day for the markets, with the S&P down 18 points. The S&P is down -1.4% since making all-time highs 2 trading days ago.
The DOW had another triple digit losing day, down 167 points. Meanwhile the Russell 2000, a “market to watch” in yesterday’s newsletter, ended the session -.65% lower. It could have been a lot worse though, the small cap index was down approximately -1.7% before recouping some of the morning losses later in the afternoon.
Day traders saw nice Simple Strategy short signals early in both the E-Mini S&P and E-Mini DOW. If you’re not familiar with the Simple Strategy make sure to check out tomorrow’s Rockwell Trading Club session covering the strategy.
So is the next crash coming? At this point the 2 day slide in the S&P appears to be more of a retracement than a reversal.
But 2 of 3 Power Crossover Method indicators are bearish, and the VIX, a.k.a the “Fear Index” jumped +8% today. So obviously there is some uncertainty in the markets.
We’ll be keeping a close eye on this one to see if we have a market crash on the horizon.