Today NDX slide $80 the overall move was more then $100 since the market opened up $25 in the morning, moved up a little more and then turned around and printed one the longest candles that I have not seen in a long time. The next logical stop is the 50DMA just below todays price at $5300 if the market continues its slide tomorrow we will certainly see some activity near that price level.
I think most people trading this recent uptrend may have not seen a down move of this scale and how rapid price action was today. I can imagine some traders giving up all the year worth of profits with a move like this and may be reconsidering carrier options tonight. One thing I am sure of is that this kind of move brings volatility and the daily rage expands for some time preceding the move. In my opinion tomorrow could be another down day as days like this signals a trend reversal or it could another dip that gets bought up in a hurry by hungry bulls just like we have seen with this uptrend.
I think most people trading this recent uptrend may have not seen a down move of this scale and how rapid price action was today. I can imagine some traders giving up all the year worth of profits with a move like this and may be reconsidering carrier options tonight. One thing I am sure of is that this kind of move brings volatility and the daily rage expands for some time preceding the move. In my opinion tomorrow could be another down day as days like this signals a trend reversal or it could another dip that gets bought up in a hurry by hungry bulls just like we have seen with this uptrend.
