The 4h (CASH200) is looking deadly, the chart below shows a...

The 4h (CASH200) is looking deadly, the chart below shows a massive down leg from the 6200 high made on the 10/06/2020. This was followed by some consolidation and a text book retrace to the 61.8%. Price bounced between the 61.8% and 38.2% level for several days, before break the lower band (31.8%) and heading lower and holding below that mark. Buy the dips investors bought below the swing low below of 23.6% and shorter covering their positions also aided in the retrace back to the 38.2% level. After Fridays close, SPI sellers held the 31.8% level and took price much lower with dust settling at 5814.



As it stands right now, the CASH200 chart is at a very key level. Monday is expected to be a blood bath after the US bank index took a massive red day at 6.44% lower. Financials and diversified financials make up 30% of the index and we should see some red on Monday, at least upon the open. For the rest of the week, we should just follow the chart and the key levels in provides. Holding overnight is still a no no.

If the grey rectangular support area is broken and not held, the the next down side target and key level of support is 5670 (CASH200). Markets are looking shaky as COVID numbers are spiking in key global areas, especially in Europe and US and this still proves to be the main driver of sentiment.

Institutional insurance has been really high for the better part of two weeks and remains elevated into Fridays trade

This is going to be pivotal week. We're all expecting some sort of second leg down, follow the chart unemotionally.
- 5 min traders need to use tight stops.
- Position traders should deleverage and keep contracts tick sizing manageable.
- Investors should have been trimming their portfolios leading up Friday, stacking cash ready when needed.
- Defensive, Gold or Defensive Growth is where you money should be!

DYOR