Stock Market Crash Line

If you would have told me a few years ago, that I’d be trading QID based on votes I was watching during a voting session on CSPAN, I would have laughed… but that’s how I traded today.  Interesting times.

In the end, the SPX and Nasdaq closed below long term trendline support.  This stretches back to October of 2007.  Ugly for the bulls obviously.  This channel trendline has been overshot before in Jan ‘08, and March ‘08.  Both times the SPX was back in the channel within a week.  This will be the 5th wave down on that channel, with each wave lasting 5-7 weeks. With the VIX whacking an all-time high of 48.40, we’re  due for a bounce soon.  If they reform this bill or pull something else out of the magic hat, this could be a significant bottom.  Still a hit and run market though.  Wait for those higher high candles to buy.