Market Analysis for 12/20

The Most Bearish Day in a Year? Maybe.

Be sure you have read the Trading Doggy Style Starter Kit. I will be adding to this over time, likely first focusing on example executions. Trading Doggy Style Starter Kit. A recent update has been made with some additional content.

The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to The Week Ahead

After holding such a massively important spot today put in a bearish inside day. I’ll make the argument below that today was contextually (and in a very nuanced way) the most bearish day we have seen in a year including yesterday. It was nearly an inside day (it was with after hours range) so we will effectively play it the same. We will have targets for either direction but buyers today made it quite difficult for me to consider taking their side. I needed to see the open today to establish a bias. It didn’t take long, and I indicated that I would be holding short runners all day for a gap fill of yesterday’s close and potentially the after hours low. The look above and fail of the overnight high and the 5993.25-6000 spot ended up the best short after falling short of yesterdays spike base. From there it was about holding runners.

So why was today so bearish contextually?