God DAMNIT Real estate dropped EXACTLY as I’d predicted, the bear flag manifested to the T & I was gone for it. I didn’t trade for fear of being too tired. I went to sleep on time, around 8:30, but woke in the middle of the night, and couldn’t fall back asleep for hours. Not wanting to trade with a compromised brain I decided that sleep was the priority. But I likely could have traded drunk the set ups were so easy, almost every name in the sector moved the exact same way. I MUST be present, I MUST be in the market. This is too infuriating to pass. I am a halfway decent technician. More often than not my analysis comes to pass. I MUST show up for it.
Energy isd dumping, everything is dumping or did dump, yesterday. Consumer staples & utilities held. financials took less of a shellacking than other sectors, real estate, energy seem to have had it the worst. There is no discernable patterns on /ES currently on the hourly or daily, but the significant 4130 level has been surpassed, marking the meaningful completion of the months long head & shoulders formation that seems to have been forming. If the measuring rules play out on this, it would not be incredulous to see 3400. There was an all time high of 4808, the neckline was around 4100.
Real Estate across the sector saw a significant beating, but there could likely be continuation. PLD looks like its pushed past any meaningful support, along with EQIX, O, EQR, AVB. DLR approaching daily resistance but could see push past as well. Keep an eye on as many of these as you can. As to which is the best suitor, I need to chart more to see. Most seem to be finding some sort of support—whether its significant enough to hold remains to be seen but exercise caution; look for better setups.
Information tech gapped down yesterday, as did many sectors, but IT did so past a significant daily support zone. Most issues within the sector look to be regaining some ground & could retrace back through what was lost. Every issue is up premarket. MSFT is approaching what is a significant daily level of 270. Depending on the strength of the issue & the overall market this could be an opportunity. TSM seems to have considerable premarket strength. If 90 can be surpassed, there’s a small gap to 91 at least, above which there seems to be congestion. NVDA above 176.6, could fill the gap back up to 183. Tech above the aforementioned levels & across the board looks ripe for some upside movement, even if it is brief. Look to capitalize if the move is not exhausted before market open. But be CAUTIOUS, the overarching trend is down. An upside play is contrary to the considerable pressure that the market has on it. A rally will be only a relief rally likely, not sustained.
Communication services as a sector as gapped up in the premarket. FB looks to be maintaining strength.
SPY reclaimed territory lost yesterday in the premarket, but approaching daily level of 405. This could be good reference point to short from. /ES also approaching significant 4050 daily level & has as of yet been unable to surpass it. There could be loose reverse head & shoulders on hourly, which would harken a move further up, but don’t count on it.