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Halftime Report, Thursday November 19: Very Bearish

|Includes: DIA, IWM, QQQ, SPY, PowerShares DB USD Bull ETF (UUP), XLF

 The broad market is breaking down hard today. We are seeing incredible deterioration in stocks with confirmation from volume and breadth. The TRIN is pretty much a breadth indicator, meaning that it measures volume flowing into stocks on the rise and compares it to volume flowing into stocks on the decline. The TRIN is looking very bearish today. The TICK has been negative almost all day. The VIX is skyrocketing, up 10%+ so far for the session.

SPY cut through some crucial support at 110. If the markets can hold these low levels, expect a down leg to start here. One thing I forgot to mention is that the dollar is showing strength today, which fits with the inverse correlation theory we have seen for most of this year.


I added to my short positions when the markets shattered support this morning. I will hold them for the down leg if it happens. Otherwise, I will lighten up on my shorts if SPY breaks back above 110. Thanks for being a part of! Always trade with a stop loss and manage your risk appropriately.

Happy Trading,