No point in messing with 0DTE's. Better to swing this for the inevitable gap fill back to 496 by mid next week. Monday is almost always up anyways and then you will just need an overnight pump and be practically there. Probably gets there by Tuesday. Usually the 3 day V rule.
1 day pullback and market is already to back to the normal. You do realize that most of the day this is choppy and goes nowhere. When it moves you get maybe 3-4 hours of downside and then the V comes. Nothing has been accomplished for bears. Yes they changed the Monthly candle for QQQ for October, but still in an extremely bullish trend. In October you had October 1st, 16th, 23rd and 31st so not terrible. They were all very short lived selloffs and each one had challenges sustaining the sell before the aggresive V dip buyers went to town the following days. Bringing this market down is still the most insanely difficult thing and it will get even harder to accomplish as time goes on. A day like August 1st was probably and once in a lifetime sell scenario. Now it just wants to always rip a V because it can and it will.
I'm 0 for 6, trying to short anything for more than a few seconds at a time. From now on, I'm just going to align with the V force. It's like gravity in reverse.
Top left is SPY and bottom left is (SPY+QQQ+DIA+IWM)/4 normalized by their respective ATR but I actually had a little bug in the calculation.
That's what it looks like on the daily. But gaps aren’t taken into account. Tried to plot close to close but it became buggy, So I am plotting open to close. No gaps. Anyway it’s for intraday purposes.
That's a nice sell to start the week. Let's see what happens when (if) last week's low breaks. 5734.50. I think we should at least test that from here. I see an open gap at 5681.50 if we do sell lower today. Seems far away now, but well within normal expectations if we do sell.
It's a Monday. Be careful, market doesn't like to make down moves on Monday. V potential is high. Likely a choppy day to nowhere.