End of Day Update

If the intraday charts hold up through the close, then I'd say Monday opened up or in the area, however because of the significant damage already in place, I'd think the most likely scenario would be that it closes down, perhaps that bearish engulfing pattern I was talking about in PCLN, it would fit well in any of the averages as well.

I chose IWM because of the divergences, because of the momentum associated with Channel Busters on the reversal and because the IWM ran to the upside, lowering the premium (like shorting in to price strength).

Many leading indicators intraday are unremarkable or in line, but High Yield Credit is not one of them, it has fallen off badly as it started yesterday and the most important credit asset, HYG looks like this right now, something very nasty going on there as they are flocking out of HYG as it follows the SPX.

 High Yield Credit vs SPX falls apart today "Credit leads, stocks follow"


HYG after a failed attempted upside reversal seeing strong distribution.

A closer look at that distribution on an upside move.

The 3 day chart...

As I said above, I would think a higher open "IF" the intraday charts hold in to the close, that doesn't look so sure anymore.

Right now the SPY is the only one still hanging on.

 QQQ 1 min intraday falling off badly

 2 min was already there, but now worse.

IWM intraday was trying, but it's failing even late afternoon only

2 min chart and this is one of the reasons I went with the IWM puts, the timing looks great.