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Volatility expanded as $SPY went from all time highs to the 21 day ema in one day wiping out four days of gains in one session.
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Holders of $SPY took the opportunity to sell into the rally Friday after non-farms payroll.
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$190 $SPY was the dump zone, that is where bulls locked in profits. The $SPX 1900 was a target by some great Elliott Wave technicians and it proved to be the target everyone was waiting on.
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Buyers did step in at the 21 day ema to support the plunge.
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Most expected a rally into the close with shorts covering not wanting to hold going into the weekend but this did not happen.
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Momentum stocks like $GOOG $TSLA $FB $LNKD and $PCLN were dumped for huge percentage losses. This is how a late stage bull market acts.
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Utilities, energy, and gold some of the only green on the chart Friday which is sign of sector rotation of capital.
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If the 21 day ema is lost the 50 day is the next level of best support and a potential bounce zone.
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Look for the 5 day ema as potential resistance level for rallies.
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Look at prices to hold up and bounce at the 30 RSI if we tumble down that far.
