Circumstances dictate that the usual Wednesday, mid-week update goes out a day early this week. I was watching the Nasdaq futures all last night, from around 8:00 pm (Arizona time) to midnight and into the overnight hours, as it just kept dropping. "Orderly," was the word for it and lest anyone think we have seen the worst of it, no, the worst of it comes when markets get disorderly, i.e., circuit breakers kick in, maybe multiple instances thereof, as happened overnight in South Korea: "South Korea's KOSPI crashed more than 8% on June 23, triggering circuit breakers twice, as Japan's Nikkei 225 broke an eight-session winning streak in a broad selloff driven by US technology stocks." Is similar chaos headed to our markets? Basis this QQQ analysis, now would be the time for such a breakdown. That doesn't guarantee such an event, just that a third wave down is due and/or it has begun, with the worst of the downside volatility still to come. If so, loading up on QQQ puts would be in order. QQQ 180 Minute This EW chart suggests more gap downs coming in the days ahead. Ergo, this early mid-week update, a "heads-up," just in case. QQQ 90 Minute Drilling down uncovers an impulse to the downside with five waves targeting QQQ 600. QQQ July Puts Consider any puts in this table, centered on the highlighted 650 strike, as a lottery ticket should downside volatility accelerate.If it starts unfolding anywhere close to what is outlined in the charts above, you know what to do.
