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After Crashing 666 points Friday the Dow Jones index crashed in the biggest points loss ever Monday, 1175 points.To put that in perspective, its a minor bump from a 30% rise. But as we said its all a matter of entry and leverage.

Dow Largest Point LossesSource: Wikipedia

On Friday we asked "Where did the bulk of people get in? What triggered the crash? Was it the fact we were already sliding into the jobs report and it signaled more high interest rates? Was it the dow components Chevron, Exxon and Apple who all sold off after earnings?"

Monday's Dow Futures Settles

Dow Futures Close 2 5 2018

Friday's Reports That Helped Prepare You For The Crash

High Flying Nasdaq Crashes, Why and What Next?

Beastly Dow Crash of 666 Points, Why and What Next?

Stocks Crash Revives Memories of 2008, What Next For S&P Futures

"All factors no doubt but technically we can see how overbought we were from our charts and as confirmed from our short entry and +3/8 Murrey Math on our S&P 500 240 chart last week and confirmed across multiple time frames and indices, namely the Dow and Nasdaq 100.

"All factors no doubt but technically we can see how overbought we were from our charts and as confirmed from our short entry and +3/8 Murrey Math on our S&P 500 240 chart last week and confirmed across multiple time frames and indices, namely the Dow and Nasdaq 100.

"Throw in the record low cash levels, low put call and vix and the herd mentaility of the only way is up. Technically the time was ripe, our crowd behavior measures had been flashing red for months. This impulsive was inevitable, but when? "

The takeway people get lost in Fear of Missing Out, at the end of the day in a game of pass the parcel it is leverage and entry that matters. People laughed at Bitcoin, seems they got over confident on everything.

Trade Smart

KnovaWave @knovawave

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