Equities Continue Sell Side Action

Tech charts and a bit on BTC

Tonight’s trade is a continuation of Friday’s selloff and here is a quick look at the equities overall:

We have seen moves like this show life and obtain some miraculous buy flows maybe on the EU open, but overall sell side flows should continue throughout the day. What Powell did on Friday is a major U-turn and pivot to the last 2 decades of “FED Put” backstopping.

For those too young to recall, the PWG or the Presidents Working Group or more appropriately called the “PPT” or Plunge Protection Team was notorious for reversing heavy selling days. Yes this was conspiracy for a long time, but we do know the truth and in fact this committee was actually created by an EO in the 80s…

Anyway we do not expect such support as this new FED position is most likely a bipartisan unilateral move by the Federal Reserve and PPT to coordinate this about face. Part of us feels like it was forced rather than intentional and we know the global instability is a big part of this new “FED Doctrine.”

Anyway check out our NQ and ES charts for tonight, we have the nearest supports and they aren’t pretty, basically about 329 and 110 pts below respectively. For those that didn’t read our last letter, please read and make use of the example we laid out in regards to time frames and risk. Also at the end we touch upon Bitcoin: