Markets Turn Down Lower, Now What?

Well, the S&P 500 closed below its 20 period moving average today, breaking the short term up-trend. This is negative, but not overwhelmingly negative. My overall long bias has not changed. The current correction is just larger than I originally anticipated.

I'm still holding my swing-long SPY first 3d position. I will add the 2nd 3d position around 116.20 to 116.60 if the market ticks down that far.

There is certainly further downside potential. The 50 MA should provide support and currently sits at 1161.50 on the ES, so there is potential it is tested this week. Doesn't look like we have seen the bottom of this correction yet. I will continue to scalp the ES and manage my swing-long SPY position until it looks like the bottom is in. I will keep posting my thoughts as we see where price takes us.