Bo Yoder Trader Thoughts

I believe the markets may be setting us up for a "Black Monday" scenario. Today's selloff began what looks to me like a capitulation cycle for the Dow & S&P 500. I would expect to see some bounce attempts intraday tomorrow, but suspect the market will end up the week on an extremely weak note. This could set us up for a big selloff and capitulation type reversal Monday or Tuesday of next week. If you are short, I would be extremely aware that the Fed has shown a distinct interest in recent years in "doinking" weak markets, and it would not surprise me a bit to see a "surprise" Fed easing intraday if the Dow is -200 or more in Friday or Monday's session.