The negative action overnight has taken out the steroid stimugap, leaving SPY is sitting on top of the Island Bottom gap. Island bottoms are rare but almost never work out, SPY tried to run away from it, but it couldn’t hide.
My wild guess is that the market is freaked out by the transition after the election. Previously, the outgoing administration has always cooperated with the incoming, but that is not happening here.
Zmed1 went into trend following mode yesterday with 9 of the 26 strategies. Yesterday afternoon doesn’t look like the most astute long entry ever at the moment.