Yesterday's rally into the close on Amazon earnings is now a huge confirmed bull trap.
As I type, we are heading into the close. And it looks ugly.
- S&P 500 Futures: -67 Down 2.04%
- Nasdaq Futures: -219 Down 2.37%
- Dow: -592 Down 2.05%
- Dollar Index: -0.486 Down 0.50%
The US dollar index is at 97.220. Frequently, if not in fact normally, the dollar rallies in time of international turmoil.
Not this time. The US dollar top may be in.
On Sunday evening I commented US Futures Poised to Gap Down on Coronavirus Scare: What Then?
Some of the "What Then?" question has been answered. This was my comment Sunday evening:
Best Bear Case
The best bear case is if this gap down fills quickly then the market collapses as soon as it does.
Right now, that appears to be what is happening.
Meanwhile, mind those gaps. We remain in a very bearish setup. Yesterday I commented, Mind the Gap, It Closed Bearishly On Wednesday
Gaps remain but they are all lower. See the above link for details.
Mike "Mish" Shedlock