Yesterday's late afternoon Premium Alert pointed out five price levels which if broken into the close would constitute major Sell Signals. Today all five levels are in danger of being triggered: DJI < 29,500 (Currently 29,480) SPX < 3,700 (Currently 3,670) QQQ < 275.00 (Currently 272.90) IWM < 170.00 (Currently 170.72) IYR < 80.00 (Currently 79.55) I will add one more this morning for my PRO subscribers: UVXY > 12.95 (Currently 12.45) For an example of how pattern recognition has brains of its own, note how this morning as each one of these levels was approached the market for that index caught a bid and stopped going down (up in the case of UVXY). Accordingly, today's price extremes stand alone as the only pillar left to fall between current conditions and an acceleration down (up for UVXY). FOR AGGRESSIVE PRO TRADERS A break of today's price extremes in all six of the above symbols triggers aggressive "add-on" trades as follows: QQQ: Oct 21 $260P (currently 3.25-3.30) SPY: Oct 21 $350P (currently 3.00-3.05) These are, "worst case scenario," picks for the next two weeks. It is a bet on a market crash event, or close to it. If there is a new Premium Alert posted later today it will be posted up on the Premium board around mid-day and could contain additional trade ideas.
