violent gap down on the major indices. That gap will be filled-
SPY testing its 50 SMA and a horizontal support level ,basically at a critical support level, i'd surprised if it loses it today. Right NOW, about 3.5% pullback from the all -time highs. a 5% pullback (whihc normally occurs 2-3 times a yr) takes the ES to 4130ish, the low of mid -june.
the delta variant has markets scared. Looking forward August historically is NOT a good month for the capital markets and a big big Powell event in said month. Dont see him taking the foot off the US Printing Machine esp., if the variant has legs --that is to say, keeps hospitals busy adn delays full openings/travel etc occur (the vaxx has shown very good efficacy in keeping people out of the hospital , preventing severe illness. Hopefully it can as well as acquired immunity have same effect with this variant)
IWM (small caps ) basically at a support that has tested and HELD 3 times since March. A loss of this level is simply not good
XLE (energy) just fuckin hammered the last 7-10 days, its at a critical level too- a loss of this level and 200 SMA here we come, great entry point on the right candle
again, looking forward-August could have some fireworks, historically not a good month
nothing has changed from a fundamental standpoint, Fear ruling the roost right now ...and fear is a powerful emotion