The markets are holding onto yesterdays gains and doing battle with the downtrend lines from the last 2 weeks. It is encouraging to see the 5 day MAs have flattened out and that there are 2 advancers for each decliner today. The primay trend remains lower but the short term timeframes continue to heal. 44.50 looks important for the Qs to hold above and 123.50 is an important level for SPY.

The Qs are stabilizing better than the SPY, but the declining 5DMA offered resistance on the first rally attempt. Adam from the Daily Options Report came up with a list of QUESTIONS after reading my book.

are in control of the short term trend. The Qs are at a potential support level but buying doesn't make sense until there are better signs of stabilization. The breakdown in the financials will likely keep pressure on the markets.

As I stated in yesterday’s video, the markets have been trying to work through resistance (140- SPY) and they seem tired. The Nasdaq 100 has made a lower high and making a lower low below 46.50 would break the put that market back below the recent uptrend line and below the 5DMA. If the Qs cannot hold above 46.50 and SPY breaks below 138, I would interpret that as a reason to be more defensive.