SPY in down spiral - market collapse continue

First support level held for SPY, the long red candle looks very similar to Aug 15 candle. This could end up being a capitulation and we see a rally from here or we see some other similar longer candles?? As America’s biggest banks begin reporting fourth-quarter results this week will be interesting to see what will that do to the market.

VIX is rising

The current levels of high volatility, its important to look at the VIX, its been rising since this morning even when the market was up and then we saw how it flipped. So important levels that I usually watch for VIX 27.5, 23, 20, 17 and 12. When it rises, VIX spends a lot more time at the 23 level then other level. Yesterday it hoovered around 23 before rising again to 24.

Support levels

May be ..

A trader's mindset

China's market is down another 9% today!

China's devaluation of its currency is the cause the market plunging for a week straight. According to the news the chines govt. has installed circuit breakers to automatically stop trading if the market index goes down by 7% (and it has happened twice this week so far). The devaluation of china's currency yuan vs US$ (and other world currencies will impact china's trade with its partners (fearful of its somewhat unknown impact), supposedly, and creating an imbalance in trade. China's economy is also showing signs of a weakness and so is the rest of the world. It looks like this slide can continue even if there is a slight lull in the selling. Watching the charts it seems identical to the market drop of Aug 2015 and this is proving to the one of the worst market conditions for the beginning of a new year.

3 years for NOW

This is the chart for what now? Futures are down on the news from N Korea? again... looks like we might see the markets opening with a gap down .. unless of course the market realizes their is nothing new in this news (coming out of NK country which has done nuke tests several times before).

1st trading day of the year 2016

First trading session of the year and the market was down more then 400 points at one point before recovering. According to the news channels china's market was do down 7% before trading was halted for the day, I wonder what will happen when the chines market resume trading tomorrow, if the selling continues how will it impact the US and other world markets? SPY took a breather around the 200 support area with a huge gap down if this support does not hold we could see Oct 2015 lows and who knows beyond. From what I know the market can recover all its losses tomorrow and never look back!!