Well, it looks like the bulls finally got "bitch slapped"... It's about time! Over 242 millions shares traded on the spy today... and that means a "Down Day". As I said in my weekend post, I was looking for 1090 to be hit before any more selling. It hit it, and dropped like a rock!
Wow! I didn't see that coming. I was wrong on my gut feeling that the market go down in the morning and up in the afternoon, but I guess you can't get everything right. Anyway, I'll keep this simple... big support at 1040. Expect a bounce there for a day or two, then more selling.
Next support is 1020, then 998-1000. I think that area will be hit sometime next month. Probably by option expiration. As for tomorrow, I say a pause day is in order... but you never know? Once the bears start slapping the bulls around... they might not stop for awhile.
Red
correcting the JULy8th to oct20 from 870 to 1101 = 230 pts
posted various levels at the blog
spx likes to make 40pt moves and i have been using that as a rule of thumb measure
even the last runup was 81 pts
230 X 38% = 88 pts = spx to 1013, but we should get more than that.
the previous degree correction was 86 pts at 870 spx on Aug17.
so this one should be larger, i would think.
Jay
I'm looking for 1040-1050 this week, then a bounce back up. After the bounce is done, we should continue back down. Support at 1020 and 998-1000. I think we'll pause a 1020 on the way down, but it should break on this trip down. Then we'll hit the 998-1000 area and bounce again.
Thanks Red
Thanks Red
correcting the JULy8th to oct20 from 870 to 1101 = 230 pts
posted various levels at the blog
spx likes to make 40pt moves and i have been using that as a rule of thumb measure
even the last runup was 81 pts
230 X 38% = 88 pts = spx to 1013, but we should get more than that.
the previous degree correction was 86 pts at 870 spx on Aug17.
so this one should be larger, i would think.
Jay
I'm looking for 1040-1050 this week, then a bounce back up. After the bounce is done, we should continue back down. Support at 1020 and 998-1000. I think we'll pause a 1020 on the way down, but it should break on this trip down. Then we'll hit the 998-1000 area and bounce again.