THE HEADLINE:  Beijing, Brazil, Bitcoin, Bonds, & Bullion Drop As FANG Bloodbath Batters Stocks

MATASII SII ANALYSIS:  JULY 29, 2018 CALL:  In the bottom left corner of the weekly chart (left), "A" identifies the top resistance of a trend channel that holds the market from a lift starting in 2008. This resistance is broken in 2017 and the market lifts, forming channel "B" ("B" is sitting on the dashed middle line of the channel).

In general we are watching to see if channel B will continue to hold the market or not. IF it does, then we can look towards the next Fibonacci levels (horizontal blue dashed) and significant technicals for target levels/areas on further lift. IF channel B fails, then we would be looking to the next lower technicals, with an eye on "A" being retested.

The daily chart (right) offers a closer look at recent action; orange highlights can be seen identifying technical trigger considerations; and orange dashed arrows offer potential moves, from one technical to the next.

Line "B" has been highlighted with an orange dashed line: if we see the market move over and find support from this s/r, then we are likely to see more significant lift. The trigger consideration for more lift sits just past recent highs at $1322.50, however a break of "B" would be better. "B" could hold anywhere and drop the market back down to the lower channel support.

The lower trigger consideration at $1218.50 sits at a Fibonacci level and the bottom of a gap. A "gap fill" is common and should be watched for, breaking lower could see the market move back to channel support. Note the green (daily) expanding wedge that held the market's lift from April of this year: waiting for this to be broken out of would offer less risk (for a down or up move). The market could fill the gap and move to the green wedge support and bounce higher, continuing the pattern.

There are a number of different scenarios we could run through as to how this market may unfold. Up, down, or sideways, we would expect to see it do so respecting the technicals; and these offer potential opportunities as the market bounces from and moves through them. Although specific trigger considerations are offered, any of the technicals can be used, depending on your own trading/investment style.

FANG stocks were hammered today, puking to six-month lows...down 24% from highs

Led by AMZN and NFLX who crashed over 7% as the UK Digital Tax was blamed (but it seemed a lot more systemic than that)...

All FANGs are now in a bear market:

  • FB -35.5%
  • AMZN -25.9%
  • NFLX -33.3%
  • GOOGL -20.3%