Stocks Suddenly Erase Gains

Hey guys, so it was another convincing pump at the open, followed by a sharp sell-off toward the Green line support (346). On the hourly, things are looking very bearish, as we just broke below the 50 period MA for the third time since it became support on on Sep 25th. If we lose 346 support today, we could see a retest of last Thursday's low of 343.13 before we catch a bid. Beyond this, we have additional support at the 50 day MA (339.58), 21 period EMA on the weekly (329), and Sep 21st weekly low of 319.80.

Just a reminder, we're still waiting for confirmation of whether or not this last weekly candle is an outside reversal candle (see above). If it is, we'll lose the Green line support this week, and this time it might be for good. As I've mentioned before, this is the move I'm positioning for. I'll be posting updates throughout the day, as usual, and please feel free to share any insights you might have as well.

I appreciate all the positive feedback from the community so far, and sincere thanks for your time today guys. Stay tuned! Cheers, Michael.

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Sitting just above the Green line support, which is holding for now. Let's see how the afternoon session shapes up, and if the bulls can hold on to this critical support level.

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Volume is anemic at the moment. Last hour saw just 260k contracts traded. Just hit a new LOD at 345.32. Looks like the rug could be pulled at any point, with even the slightest hint of "pessimism." Nancy Pelosi and Mnuchin supposed to be meeting at 3PM for "negotiations," so let's see how markets react when we get a verdict on how the talks went.

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Sell-off picking up steam here. New LOD again at 344.55.
343.14 is the next major support, which was the recent low from last week Thursday.

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Continued weakness here as we approach power hour. New LOD is 343.82. Will the bulls arrive to save the day?

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Just broke below the recent low from last week Thursday. Sitting right at the 100 period MA on the hourly, at 343. Looking like a dash for cash at the moment, but the Dollar is also looking weak, so perhaps we're seeing a rotation/rebalancing act unfold.

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Just kissed the 21 day EMA at 341.51. Key supports breaking on multiple time-frames. Not looking good for the bulls right now. Let's see if they'll buy the dip today...

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This morning, stocks were up on... you guessed it, "stimulus optimism," and now they're down on, "stimulus skepticism." We've sure become an indecisive bunch, haven't we? The stock market is starting to feel like a WWE wrestling match. We all know it's fake, but...

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Finding some support here at the 21 day EMA (341.51). Is it BTFD time, or can the bears take us lower? *grabs popcorn*

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According to Zero Hedge, Morgan Stanley thinks we're in for a 10% correction, after failing to break above a key 30 year resistance level. What do you guys think? Is it mostly downhill from here for risk assets?

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Okay guys, that's all she wrote. We held the 21 day EMA, but barely. It was a slow and steady sell-off throughout the day, and the bulls, at least for now, lost the key Green line support. We also saw a lower low from last week Thursday's low, showing a bearish continuation of the trend from the recent high on Oct 12th. We may see a retest of the Green line, as resistance, as early as tomorrow, and the bears will have to defend it once again. A weekly close below 346 is bearish, and could see further downside next week if the bulls fail to recapture this key level.

Thanks for your time today guys! I hope you enjoyed today's analysis, and have a great evening. Cheers, Michael.