Markets Continue Downfall - Trading Journal (09.23.20)

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The market weakness has continue and as I type this the futures is down another 0.5%. The market is clearly in a downtrend and hedging is key to not lose substantial amount of equity.

Tech will have to lead the way up if there is to be a bounce since its been the leader on the way up. Currently holding up better than SPY or IWM - small caps.

What is important to note though is IWM have lead in the drop. It has broke thru the 50 and 200 MA but it will be important to determine if it can bounce in the next couple of days.

Bulls do not have to do much to get prices back up since volume has been low and short term markets are oversold. However it is not to say oversold means it can not be deeper oversold.

The dollar has been rising making a risk off in stocks. The VIX have slightly rose in the past session but without a real peak the index draw down may continue. On the bright side most FANG stocks are near supports so can bounce, but we won't know until markets start trading at those levels.

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