Hopefully you have been in on this week’s cheap option trade and if you were lucky you were late to the game and missed some of the drawdown at the beginning of the week.

Now the question is what does today’s close tell us about what to expect for Monday. A lot happened at the end of the session today but it isn’t unprecedented. We saw this exact pattern recently and that is the first place we are going to look.

It showed the sam case of a level of support that was tested multiple times and then failed, just like what happened today. Here’s what happened next.

You can see the two blue trend lines that I added to the chart. Thru June and July, the NASDAQ tested that support level at 25000. Then at the end of July that support failed. We have see a support level that held since shortly after that just fail today.

The failure is more dramatic in that it gapped down hard at the open and fell a lot more in the session. But buyers did start grabbing the dip just before the close.

Monday has a lot of signs that the slide will continue and if it breaks the red 200 day moving average, it could be a major drop. The caution is that we saw it recover from that dip at the end of July and buyers could swoop in on Monday. We will look at the open on Monday and see if there is some clarity we can act on.

If you are getting these and have questions or want to have a chart you want to see in an upcoming article, shoot me an email marketwealthdaily@gmail.com.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily

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