I have combed through the history of the SPX looking at the rise above the 200 day in the past 5 or 6 bull markets from the 80s. (moves over the 200 MA). All of them found support at the 200 day MA on a daily time frame. This means they were even bought, they looked below and failed, they were bought a few days and then came back above. There were many times the 200 day was tested and recovered or at least held. ALL OF THEM bounced there, except ONE... (you can go back and look if you want or you can just trust and keep reading lol)

Check out the comparison below. You can see the major runup and extension of both of these from the prior months of each timeframe.

You can see how 1987 just sliced through the 200 day MA like butter. Now flash forward to 2018 and you can see we had a 1 day bounce. In fact that is not even a bounce, that is an up day and then a puke. I cannot stress how important the next two trading days are in this situation.

If we sell off tomorrow at the close into the weekend and close on the lows, (first time this has happened in a very long time, 2015 flash crash or volatility spike maybe?) we are setting up a crash like event that happens early next week. Markets usually (very very often) do not bottom on Friday's. It is very important that we bounce here and now...

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by heyimsnuffles

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