Hi Shoppers,

According to my charts, the SPY, QQQ and IWM have all violated a support level and closed below it.

Remember, the closing price is more important than the intraday highs and lows.

So let’s take a look.

For SPDR S&P 500 (Ticker: SPY) my support level is right there at that nice rounded number $390.

Makes total sense, as it would be 3900 on the SPX, but you can also see it on the chart:

SPY closed $389.63. Violation of the support line? Too close to say.  Maybe not.

Next level of support is the 50 day moving average at $385.50.

Trading down to $381 would close the gap created on November 10th.

Invesco QQQ Trust (Ticker: QQQ) not only closed below my support level of $278.25, but also below the 50 day moving average of $278.11.

I am seeing support below here at $270, which would close the gap created on November 10th.

The Ishares Russell 2000 (Ticker: IWM), held its 50 day moving average on Wednesday but opened below it yesterday.

I am seeing support below here at $169.

IWM has already closed its gap on November 10th.

Remember the rule of closing the gap in Japanese candlesticks, once the gap is closed the stock will continue in the same direction, which in this instance would be up.

So, maybe we trade a bit lower from here and then rally … ?

Possibly, right?

Hell, anything is possible these days!

Looking for a quick shot on the short side?

Check out the ProShares UltraPro Short S&P 500 3x (Ticker: SPXU) calls:

Next week’s 16.50s may not be a bad shot for $.45.

I know I have been touting a Santa Claus rally and it is certainly still possible.

Thanks for Reading … See You Next Tuesday.

Licia Leslie