Market Will Tank Today – Quad Witching Will Add Fuel To the Fire

Posted 9:20 AM ET - The FOMC statement was dovish, but the market did not rally on the news. We saw late day selling and that was a warning sign. This morning we are seeing follow through selling. Global markets are down and Brexit could be a problem as the "leave" vote gains an edge. A dovish statement was baked in. We could be in for a nasty day!! When the unexpected happens it typically catches traders off guard and the moves can be big. Quadruple witching will add gasoline to the fire. We will open below support at $207.50. Next support is $204. I am going to trade from the short side right away. I will buy a few puts on weak stocks. Financials are a good bet. Interest rates will remain low (bad for banks) and credit issues will surface if Brexit happens. The key will be a new low after an hour of trading. If that happens, add to shorts. Having a few shorts on makes sense. Brexit results will be known next Friday and we can expect weakness until then. I will not be buying the bounce today. I will let it run its course and I will be shorting when the bounce stalls. . .

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