Market Update: The Flag was Head Faked

As I suspected...

 The bear flag mentioned earlier was run, technical traders expected it to break to the downside so they'll go along with it, but it should make a new leg about as large as the first which it obviously hasn't, so again, even on an intraday basis, Technical Analysis price patterns are used against those who blindly follow them

 Remember though, there's almost always a reversal process and this one is under way, so a counter trend or intraday correction looks more likely, but to really prop up probabilities...

The 2 min chart has now joined, this makes a consolidation through time less likely and a correction through price more likely.

What can you do with this?

First, don't panic, the larger probabilities are still solidly negative and this early in the day you really can't expect only 1 trend will prevail all day without a correction (unless it's a short squeeze or a massive margin call stock dump).

You can take profits on December Puts if you like and wait to set up new January ones on a bounce. Since Gold has been moving opposite the market, the DUST position is likely to see upside, keep an eye on that.

If you are really aggressive, you can trade some weekly/intraday calls, but I'd rather have more evidence and a stronger case before doing that.

In any case, there's nothing strange about this, it's actually much more normal trade than we've seen over the past 4 years.

I'm going to look around at some positions, but for now assume we get an intraday bounce.