Sam Weiss

The $NYMO presses higher while the market pulls back a little off of its highs. It’s still unclear whether we’ll see a third leg lower, but if we do, it will likely be small and short lived.

Market pull-back looks minor at the moment. But as we mentioned yesterday, the market started to show signs of weakened ahead of today’s sell-off. It’s not yet clear whether it will turn into anything more.

There’s some evidence starting to emerge pointing toward a potential third leg lower staring sooner than we might expect. However, the market has still likely bottomed and we’re still due for a multi-month rally.

Markets are just beginning to normalize as signs point toward a multi-week rally on the horizon.

Trading ranges have come down and the market’s violent swings have abated. However, volatility remains high indicating we’re still very early innings in the rally.

Market retracing some of yesterday’s gains as focus shifts toward the China trade war. Trading ranges & the $VIX both remain elevated and outside normal operations.

The markets remain a full 5% off of their lows set early Monday morning. The $VIX still trades north of 50 and remains deeply overbought. The NASDAQ-100 Daily & Weekly charts are oversold.

Capitulation Monday is following the typical playbook. The QQQ has already rallied 10% off of its lows and we’re likely to see substantial more upside ahead.

All of the signs point toward the market setting a bottom in this very trading day. In fact, there’s a strong probability the market will bottom during the first few hours of trade today.