Even though the S&P broke the previous summer low if Monday opens higher we can expect that this was a fakeout and the double bottom pattern will come into play. The overall fundamental picture is more critical and dominant than some lines on the chart. However, still, it can be a high-risk, high-reward trade that can come into great use if we already have some puts on the main indexes as the retail investors holding puts are at record highs. With the VIX index being highly volatile recently it wouldn't be a big surprise if this break of the bottom is a fake out and retest of the fibo level which overlap with the technical analyzes.
Again the overall trend is bearish but if we see an opportunity that matches our trading style we have to act accordingly.
Again the overall trend is bearish but if we see an opportunity that matches our trading style we have to act accordingly.
