How We Saw the Latest Correction Coming Dear Savio, While Wall Street is full of high spirits today, we entered correction territory last week, with the markets down more than 10% from their peak. While that came as a surprise to many investors, if you’ve been following along here, then you saw this correction coming from a mile away. Two weeks ago, I warned you that heavy Dark Pool activity was coming in on the SPDR S&P 500 Trust ETF (SPY) at $346 and $352.46. Below is the chart where I mapped out my bullish above/bearish below levels for you. 
Last Monday, October 26, on social media I warned folks to put protection on when the SPY went below the $340 level. 
You can see that the SPY came crashing all the way down to $322.60 last week. There are more massive Dark Pool “Sell” prints that we are below right now. Take a look below at all the Dark Pool levels over the past two months. The ones highlighted in green are the heaviest levels. 
Investors are getting scared again. You can see that the Fear & Greed Index is on 25 – Extreme Fear. 
In today’s Dark Pool Trader Weekly Review, I have a whole new set of levels for you watch this week for the SPY: bullish above $340 and bearish below $325. 
Two weeks ago here, I also warned you of heavy Dark Pool activity coming in on the Invesco QQQ Trust (QQQ), the Nasdaq Composite ETF, at $285.73 and $294.56. Here again is the chart I posted for you on October 19. 
The earnings that have been coming out this past week have not been positive for big tech companies like Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), and Twitter Inc. (TWTR). We have fallen below more massive Dark Pool levels on the QQQ. Take a look at the levels my scanner has picked up. 
Here are the new levels to watch this week if you are looking to trade the QQQ or any of the big tech stocks: bullish above $282.50 and bearish below $270. 
Two weeks ago, I also showed you that the iShares Russell 2000 ETF (IWM) had heavy Dark Pool levels coming in at $160, $161.07, and $161.74. I was bearish below $160 on the chart below. 
Last week, the IWM went all the way down to $151.39. I have a new set of targets set up for the IWM for the next few weeks: bullish above $156.25 and bearish below $151.25. 
Last week, we saw some very interesting prints on some bear inverse instruments. Those are ETFs that go up when the S&P 500 goes down. I showed my social media followers what I spotted via a series of tweets. This first one, from Tuesday, October 27, was about the Direxion Daily S&P 500 Bear 3X Shares ETF (SPXS). It goes up when the SPY goes down – but at three times the speed.
I also saw massive Dark Pool prints on the ProShares UltraPro Short S&P 500 (SPXU). Here is my tweet on that one. 
We have a very interesting week ahead. I do not know who is going to win this election or how the stock market is going to react. No one does for sure. But I will be bullish above the levels I showed you… and bearish below. No thinking! C Puts On Friday, October 30, I recommended a protection position on Citigroup Inc. (C) – via the C November 20 $35 Put Options – because we are below some heavy prints on it. I wanted you to have some protection going into this week, because we are under some massive Dark Pool levels on the major indexes, just in case. If the stock market likes the election results and goes above those heavy levels, we will find some new bullish swing trades. I have not made too many recommendations recently because the implied volatility (IV) has been super high as earnings season has collided with Election Day. We are almost done with both, though, so you can expect many recommendations to come your way in the next few weeks. Until next time… Happy trading!
Stefanie Kammerman,
Editor, Dark Pool Trader
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