Until there is a strong breakout with good follow-through, there is no breakout.

Last week’s sell off was climactic and it will probably be followed by at least a couple of day’s up this week. If instead this week continues to sell off with big bear trend bars, the odds of a bear breakout will go up.

NOTE:  continue to position in agreement with the controlling price action, keeping risk in check, trading day by day, and be prepared for just about anything

NOTE: this Wednesday at 11am PST we have FOMC Meeting Announcement

Wednesday was one of the weirdest market days in years, not just due to price action, but the incredible stream of events behind the action.

'The S&P 500 threatened to breach its 200 DMA support this week… then violently reversed… then reversed again… and is now threatening to reverse back higher once again. Meanwhile the NYSE shut down for hours on Wednesday, even as United Airlines and the Wall Street Journal experienced troubling outages, against a backdrop of China market collapse where trillions of dollars worth of shares have been “frozen” i.e. seen trading completely halted (with ominous leverage in play via stock loans) and unprecedented government bans on share sales for large stakeholders (not even short selling, just bans on selling period!). Then adding to this madness you have the situation in Europe, which only seems to keep getting weirder as Greece itself heads toward chaos 

There is a strong temptation to “do something” in markets like this, but as long as exposure is contained (and risk management is in place) the best thing overall is often to just sit back and watch. Periods of high and rising volatility coupled with wild twists and turns based on political statements are better opportunities to preserve capital (by not getting caught up in the maelstrom) than to try and earn capital (by getting frantic or overly involved).'