With today's gap down, the selling didn't really let up until we hit the 835 zone. This is important because it is telling us that the psychology of the market has shifted from bull to bear. While we were certainly oversold at the close, I have yet to see any significant divergences show up that would concern me. Any bounce tomorrow should be contained by the 34 Hourly SMA until our first wave 'a of B' is over, which could occur anywhere but likely between 790-815.
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Rich, good call by the way...you nailed it.
ReplyDeleteDont you see any pullbacks (minutte's) within a of B? Your target for "a" seems pretty low and I was expecting the 830/825 area to be the end of "a".
I unfortunately missed the boat this morning/Friday so was planning on waiting for the end of b of B, to go short again.
Nice call Rich...been holding a little SDS myself.
ReplyDeleteMikeT, absolutely, we probably will see a minor pullback, but it should be contained by the 34 60 min SMA. Right now it is sitting at SPX 851/ES 847.5.
ReplyDeleteThanks saleen99, this market was really grinding me there for a while with so many 'near' end moves. Of course, that is the nature of an ED.
ReplyDeleteLong waited b...Thanks for the chart!
ReplyDeleteYes it was really tempting to bail out after SPX made a new high on Friday. But the way it gave away its gains late in the day was encouraging. Sometimes patience pays off, huh..
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