What's going on guys welcome back to the channel, i appreciate you guys tuning in this morning, so we're getting ready to cover the spy and the nasdaq and hopefully make a little bit more sense of the market. First, things first did not expect as big of a sell-off as we got yesterday now, a pullback and a downward move wouldn't really surprise me, but how big it was. That was definitely a little surprising so yesterday, during the pre-market video pretty much. What we were talking about was for the nasdaq to show signs of acceptance.

Above these price levels were act which, at the time were actually a little higher in the pre-market video we did. Yesterday, but to keep things simple, we wanted to see acceptance over these orange yellow lines to open the door for continued long moves up, whether it be yesterday or into the coming days or the future, and that didn't happen. The market pushed over couldn't hold, went back under and at that point you would be less long biased if you were watching the markets. The way we were but anyways yesterday results in a really big down move did not see that coming at all myself, all right.

So now that that's happened, we know that there is a lot of selling pressure. That happened yesterday, all right. The likelihood that today you would see the markets just have a really awesome run is very unlikely. The best case scenario, bullish, move today, would be the market back to prices of 440 to 442., so for now, there's no way that i would be watching the market anything higher than this point on the day.

So what we're talking about it would be a counter trend, long bounce from here up into these levels and then see sellers come back in which either they press it down today or they would press it down tomorrow, most likely or well tomorrow, saturday, so um next Monday, all right now, yeah, so anyways right now max long spy, four, four, four, forty twenty nine to four forty, two back up for a counter trend: long bounce! If this happens, i would be selling short there. I would be getting bearish okay, 100. Now, looking at the nasdaq, you can see why we're starting to have some hesitation it might it actually might be the spy? Let me just double check, but what we're going to do now is we're going to take a look at the spy on this chart and the nasdaq on this chart on a five minute time frame and that's going to help us get some more levels to make. This a little bit more clear, so five-day five-minute chart here.

You can see why the pre-market high is where the pre-market high was at least here. Pre-Market high was set in by statistical levels. We came back up, we tried to break above, didn't really get any acceptance and now we're back below. So that's a break down.

So as long as we hold below these levels, we could probably see a swing lower. Okay, now, let's just double check this spy yep. So spy you can see, we have a bunch of levels right here - 440 29 - here here it doesn't matter, but just in general we won't look for the spy anything higher than that on the day. So pretty much everything we're looking at is counter trend bouncing to be sold into for now, so we're bearish, but no we can see counter trend long bounces.

So in the event we the market, chooses to do that. The max counter trend, long bounce. We would look for is all the way up to here and here and then we would still sell into it. Otherwise we're just going to drop out of the gates and do a quick sell off, because the nasdaq is failing to hold above this level.

So right now this is pretty much the price point you're most concerned with is 340 60 to 340 96 on the nasdaq, because that's going to determine whether we're going up or down to start, you know into this day and what i mean by that is well. Unless you are over and above you won't go higher and if you're holding below and down, then you can go lower, and so it's really is just this little price point you're paying attention to for right now. Okay and of course, these levels will update slightly into the open um. So in the event, we have a two-day big sell-off and we just take out these lows right.

Let's say that happens, then, on a big sell-off day, we could see prices of 327 on the nasdaq to 324 on the nasdaq. That would be our next pricing structure. Down now, big sell-off takes place happens on the spy. We would then look down to um.

Sorry one second yeah so sell down your first down. Targets on the spy would be about the pre-market low because we have levels there so for right now the levels down on the spy would first be pre-market low, take out pre-market load. Then you look to three. Four: three: four: thirty five yeah look at about four thirty: five that takes out you look down at three 432, et cetera, et cetera, et cetera, all the way until you get to the negative two.

So to make it a little more simple. Um markets continue to slide out. You would expect that the nasdaq will find itself somewhere at this green line and then there'll probably be a bounce um heading over the spy same thing. Markets continue to slide out.

You'd expect we're going to go down to about those green lines so for right now you know looking to be bearish on counter trend bounces for the time being, so hope that helps and i'll see you guys the next video and have a good weekend.