Stock Market Crash (Spy ,Dia, Iwm, Qqq, Vix, Dxy )

Welcome back to the channel, guys! Today, we are going to dive into the overall stock market performance. And guess what? It's not looking so hot.

Last Friday, we saw a bloodbath across the board. The Dow Jones Industrial Average (DOW) was down 1%, the NASDAQ down 1.76%, and the S&P 500 down 1.45%. It seems like a sea of red, my friends.

If we take a closer look at the market sectors, it's even more disheartening. Real estate, financials, industrials, technology, and basic materials are all taking a beating. On the flip side, consumer defensive, healthcare, consumer cyclical, and energy seem to be holding up. But overall, the market map looks like a massacre.

Some of our favorite giants, like Amazon, Disney, Google, Meta (formerly Facebook), Apple, and Microsoft, are also experiencing their fair share of losses. Amazon is down 1.65%, Disney down 2.67%, Google down 1.78%, Meta down 1.20%, Apple down 1.39%, and Microsoft down 1.48%.

The Bear Market Strikes Again

Let's take a closer look at the S&P 500 ETF (SPY). Unfortunately, folks, we can confirm that the bear market is back. The SPY has not only broken its 200-day support at 393, but it has also taken out the critical support at 390. It's not even finding solace in the Bollinger band, as it is currently sitting at 386.

Now, I know what you're thinking. Will we see a bounce? It's possible, my friends. We might experience a temporary respite. In fact, we saw a little rally last Friday, with the SPY jumping back up to 393. But alas, it was short-lived as it quickly got rejected at that level. And just like that, the SPY came crashing back down, breaking the 390 support.

Now, I hate to be the bearer of bad news, but things are not looking great. We might see a retest of the lows from December, and who knows, we might even plummet all the way down to 350 again. Brace yourselves, my fellow investors. The next six weeks to two months could be rough.

Momentum Shift and Shorting Opportunities

If you've been following my channel, you'll know that I'm a momentum trader. And let me tell you, my friends, the momentum has shifted. The market is now heading down, and that means shorting opportunities for me. When it goes up, I'll be buying calls. But for now, I'm looking for opportunities to profit from this downward trend.

I took advantage of the recent jump and bought a ton of calls. And you know what? I made some sweet profits and sold everything. But now, the momentum is shifting again, and it's shifting to the downside. We've broken the 200-day support and the critical 390 support. So, unless we see a significant upward movement, the bear market will continue to wreak havoc.

Now, I must warn you, my fellow traders. Don't just buy this dip blindly, thinking you'll see a bounce. Wait for confirmation. And that confirmation will come when the SPY holds at 385. Because if it breaks, hold on tight, my friends. We're headed down to 380-378, and that's when you can find a better entry point to play this oversold condition to the upside.

A Glimpse into Other Markets

Let's take a quick peek at some other markets, shall we? The Triple Q (QQQ) has finally closed the gap at 288. But here's the thing, it's holding at 288 as support. Watch out for this critical level, my friends. If it breaks, we might slide down to 286 and, who knows, maybe even down to 280. On the upside, we'll face resistance at 290, 294, 296, and 297.

The DIA, or the Dow Jones Industrial Average ETF, is also getting extremely oversold. But it's managing to hold at 318 as support. Keep an eye on this level. If it breaks, we could be heading down to fill the gap at 309.10. And ladies and gentlemen, that's a significant move to the downside. On the upside, we might see a potential bounce back up to 326 before considering shorting opportunities.

Now, let's talk about the IWM, aka the Russell 2000 ETF. It has closed the gap at 180 and sliced through it, currently sitting at 176. It's extremely oversold, my friends, but hey, we might see a bounce back up to 178 or even 180 before filling the gap at 181.28. Watch out for resistance at 178 because if it gets broken, the IWM could climb all the way up to 183, 185, and even 188. But let's not get ahead of ourselves just yet.

And finally, let's not forget about the VIX, the volatility index. If we see a relief rally in the market, watch out for support at 24.23. On the upside, we expect resistance at 26.34, 28.77, and 32.

The Dollar Index Takes a Breather

Lastly, let's shift our attention to the dollar index. The dollar is down 0.64% on Friday and seems to be taking a breather. It's currently consolidating above 104, which is still bullish. If it holds at 104, we might see a move back up to 106. And once that breaks, buckle up, my friends, because we might experience a quick trip all the way up to 109. Keep an eye on that critical support at 104.

Well, there you have it, my friends. A brief overview of the overall stock market performance. Brace yourselves, as we dance with the bears in this bear market. Stay tuned for more updates and trading opportunities. As always, trade smart, trade safe, and let's make some money together!