SPY/QQQ Plan Your Trade For 2-11 : GAP Defender

The GAP Defender pattern is where price struggles to maintain a recent open GAP - attempting to defend against closing that GAP.

In my mind, this is the lower GAP window between 601.30 and 602.75 (yesterday's opening GAP range).

If this recent gap is filled, then I suggest the SPY will attempt to move downward (into my Deep-V breakdown) trying to target the lower GAP near 584.29.

Watch Gold and Silver as they continue to breakdown. Any big breakdown in metals should be considered a warning sign the markets are moving into a PANIC phase (selling).

We have lots of news today (Powell and other Fed members testifying) while we just found out Trump initiated a larger tariff on steel. I believe the strength of the US Dollar will continue to put pressure on global currencies - possibly leading to even more foreign market distress. This may result in a broader global market breakdown over the next 5-10 trading days.

Remember, we have the Deep-V pattern setting up this week and another Major Bottom pattern setting up on Feb 21. I interpret this as a dual-breakdown event - where price attempts to move downward and tries to identify solid support.

Bitcoin will likely follow this trend downward over the next 5 to 10+ days.

Buckle up.

It looks like today may be the day my Deep-V breakdown starts to drive prices lower for the SPY/QQQ and other major sectors.

We'll see how things play out.

Get some.

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