Yesterday we covered QQQ as the market index (ETF) leading equity prices to the downside. Today the Dow and S&P gapped down to touch their reversal-down ATR Signal Line which is providing some temporary support. Next time it goes through and initiates a new leg down across the board. We already own QQQ Jun 18th $325P and it will serve us well. ATR Reversal-Sell Signal: DJIA < 33,970 ATR Reversal Sell Signal: SPX < 4,100 Option: QQQ Jun18th $315P TLT Today we have the same pattern setting up in TLT. If 136.50 is broken, it too is starting a new leg down: New SELL Signal Pending: TLT close below 136.50 (currently 137.25) Option if triggered: July 18th $134P (currently 2.15-2.20) Target: $131, then $113 - as per Fib chart below.
