The real fun was supposed to begin today and boy did it. SPX had one of the wildest days in recent memory, seeing 100+ swings in both directions. The overall intraday range on SPX ended up being just about 137 points. SPX was down nearly 100 points, flipped green on the day, and then closed down near the lows, down about 112 points.

Volatility was expected this week with FOMC and MAG 7 earnings and so far it has delivered. VIX also crossed over 20 again and closed there.

The daily chart on SPX is beginning to break down, finally playing catch up to NQ. While the June lows (7237) have not been broken yet on SPX, it seems that NQ might end up dragging SPX down there with it. We are less than 100 points from that target and only about 50 points away from the lower end of the expected move as of the close today.

The 137 point range today isn’t even the crazy part. We see that pretty often. The craziest part today was the double reversal. We were down big in the morning, recovered and flipped green on the day and then fell right back down to new lows and closed there.

The sell off at the end came all within the last hour, where we saw SPX drop the full 137 points. This is an insanely fast drop for just 1 hour.

The high on SPX yesterday was 7450. We rallied right back up to that level again and saw one of the fiercest upside rejections in months. Below is the price action from just the last 2 days. You can see how we rallied back to 7450 and then immediately got swatted right back down.

In theory, this should be considered incredibly bearish price action. There was definitely some serious damage done today and it was the first time in a long time that we saw some serious downside momentum.

NQ continued the push lower, coming closer to the lower end of our grey box. 27000 was just a stones throw away with the low today being 27201. A breach below could certainly trigger more selling.

MSFT may save the day, and AAPL might join in tomorrow but I don’t think that really changes the narrative.

SNDK is down over 60% from the highs and MU is at around 40% down from the highs. These were the market leaders on the way up and right now they are starting to unwind. I think it is safe to say that a 40-60% drop in major chip stocks is an unwind. Those are incredibly large numbers.

Things are starting to look serious, especially when you turn to what is happening in Korea. We are seeing the aftershocks of that in NQ. Can we get to a point where we start seeing similar drops here?

As I said, AAPL might save the day as it usually does but I think it might only be temporary. Dip buyers got destroyed today and you don’t see that too often. Was it enough to scare them away or are they going to try again on the next drop?

The week is coming to an end, and so is July. So far the theme is bearish.

Good luck!