We are still above 2923 which is the 61% Fib Level. The sellers took control today but as I mentioned in the morning, this can be considered a healthy pullback for longterm investors.
I expect to have more downside pressure and I did not expect a -5% today. Some of you asked me why a wrote -5% on the chart.
Large players will be modifying risk tomorrow for the rest of the month and the summer. Most of us should also be comfortable with the current risk of the portfolio going into summer.
We can not rule out that Feb 2020 could turn to be the high of the year for SPX and maybe this week high can turn to be the high for NDX or maybe the All-Time High for the next couple years. It is healthy to consider all possible outcomes.
My personal view is that pullbacks will be bought by large institutions and we can see new highs this year, 2021 and later in 2022 but I do not make money from my personal view. I make most of my money from managing risk with options and disregarding my personal view.
Please take the time to review these charts which have a day lag for a reason