OOgly.

OOgly.

That”s the technical label for overnight price action in S&P futures. Another European firm fails, Israeli-Palestinian escalation, FOMC Minutes afterthoughts, the red line crossed under the green line, the longer term this crossed under the shorter term that… 

A: All of the above.

Gapping down so substantially can often find the sudden repricing has made new sellers disinterested. The earliest indication would be in whether the first hour were to extend the decline, or not. Bouncing immediately isn”t necessary to forming a bottom — unless the bounce were big enough to recover some relevant higher level, which in this case is much higher.

What happens to our MJ sector under these conditions is probably obvious. The question is whether to remain exposed to that risk, or to side-step it. Traders will generally choose to “hit the bid” and raise cash, whether to buy lower, or to buy higher when the market has proved the storm has passed.

I”ll add observations of the opening action to this thread, and I encourage everyone to do the same.