Greetings from Playa Del Carmen, Mexico.
Today the markets suffered their biggest losses year to date and as the markets careened lower and I had my own personal roller coaster ride after catching a nasty case of food poisoning that I’m chalking up to some not so well prepared seafood.
Nothing quite like spending your vacation cooped up in your hotel room. Wish me a quick recovery! 😀
As I’ve been warning in the Weekly Market Outlook videos and last week’s heads up on the potential sell-off, after taking out the prior week’s lows, monthly lows, and turning the quarter red the sellers have wrested control from the buyers and we are now trading full-time frame alignment (TFA) to the downside.
This is the type of price action you can expect and today as warned the VXX buyers took the monthly inside-bar reversal condition and took out June’s pivot high.
SPY’s June outside bar lows are now in play and there’s a high probability that that pivot gets taken out.
The elevated volatility calls for reduced position size and lower timeframe trades as there is plenty of intraday range to capture.
Enjoy the volatility traders!