Yesterday we witnessed a major reversal.
Please note the big gaps on either side of the market here this mornign. Currently as of 8:40AM we have about a 1.4% gap to the downside and about a 2.3% gap to the upside. That sets up clearly defined targets for Bucket 1 trades and possibly Bucket 2.
The chart below is the S&P 500 EMINI Futures 15 minute chart and shows the gaps on either side of the market in the gray boxes. It is likely that we fill at least one of these gaps today. Which one will fill is yet too early to tell but the way to play this if not via the futures would be to either buy or sell the SPY and wait for the gap to fill. We will have to evaluate this as the market opens this morning.
All in all however it is a seriously volatile environment right here and holding individual equities just doesn't make any sense. This could change soon again but right now cash is the best place to be.