Markets did gap down a little and then moved down to 1319-1320 , which were more than I were expecting... but overall I bought the dip yesterday and added size longs at 1322 SPX as I think it was a brilliant buying opportunity - at least for the short term.
There are many reasons why:
1. We tested the MA(50) and found buyers
2. Markets oversold - we are at a point where the bottom should be found
3. Bearish sentiment been increasing a lot last 2 weeks - gives more fuel for the bulls
4. The euro to me looks like hit a short term bottom at 140 FXE - and I think it will rally soon ( therefore markets should move higher )
5. Dollar UUP looks bearish to me in the short term according to daily charts - so dollar should have a pullback.
6. NDX Nasdaq and QQQ got down to its trendline support - or very very close... bounced from there....
7. Dow made a red hammer (possible reversal pattern)
8. Lots of indexes made a hollow red candle pattern , usually a bottom.
Overall bought size TNA again after selling a lot in the 87 but still holding 82 some , and added big again at 79,6 TNA-at least for the short term...
My obj target for SPX remains 1380 now and if the bottom were not in- then I think we are really close as they may fill the gap we have on SPX around 1310-1315.
Banks (KBE) ended up 1.6% and confirmed the buy signal I had 2 days ago with the bullish harami pattern - you can play FAS (3x long financials) which also looks good here.
I'm not at my own computer so cant make my charts via my charting software today.
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