Here is the e-mini wave chart for the past two day sessions. You can see the volume climax (green arrow) which developed early today. So far it has led to a period of sideways action, but I think that the day's low will not be far from the day's early climactic low - I think the 780-85 range is a likely spot.In the meantime the market has stayed below the lower of its two breakout points (purple dotted lines) - the one corresponding to the January 20 low point. As long as the second, higher dotted line holds I think the ultimate low will be in the 760-770 range and will be reached this week.
2 comments:
Hi Carl,
The only thing that could turn me bullish now is a close today above 801.40. Otherwise, I will remain short from the 816.00 short I took yesterday, the futures traded yesterdeay and I posted that short to you.
We have been in a bear market for some time already and a close today below 801.40 will give me a fresh newly confirmed sell signal, which means that a top of sorts is now in place.
Historically, the months of December through February have been the three most bullish months of the year. This year the market was only able to move sideways. This is not encouraging. And now, with a new sell signal, I would have to believe we'll likely see another wave of selling enter the market. It would not be unreasonable to see the SP's test the 600ish to 670ish level in the current down leg. But, time will tell.
Again, if we rally this afternoon and close above 801.40 today, then all bets are off.
Thanks.
Kindest regards,
PM
well 2:40 is approaching--will it be a short squeeze or like the usual thingee--sell whenever the politicians come up on CNBC..I think everybody is tired..and the weak hands have been taken out--now only the fittest daytraders are left out there (i keep saying the long term buyers are staying out of this market)..the best thing to do is to stay out of this market for the next 2 weeks if one is not already short--
678 here we come baby!
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