This mornings plan was to buy weakness and key off of FANG which was strong. The other part was to see how the banks acted. While they held the 26.27 area they were weak most of the day. Earnings later this week in the banks should be a mover. Once FANG lost some steam in the afternoon the overall market sold off, The es made new daily lows of 2877.25 and the NQ 7578.75. Also, its important to note that the NQ had an inside day when looking at just the pit session so today wasn’t significant in the scheme of things. I expect some more back and forth trading while the SPX and NDX work off the overbought RSI reading. There has been no damage to the market so I would expect the indexes to test the recent highs when selling the has exhausted. I will be watching for day trade set ups without overnight exposure until things look clearer.
The key is to take set up to set up and see where that takes us. That is the key to short term trading. FLEXIBILITY and ADAPTABILITY are KEY to this.