A Very Bearlishess Day!

The bears got feed well today, but will it continue?

And the answer is… “YES”, it will continue!  Yippee!  It’s great to be a bear right now, so I hope everyone was already positioned well for today’s sell off.  For tomorrow I expect a “pause” day, even ending slightly up… but not much.  After such a big down day, it’s normal to have the next day flat while the market disgusts the news.

But Friday… look out below!  I don’t think any news can cause Friday to be some big rally day.  No trader in his right mind is going to hold over the weekend.  While they can fudge the Initial Claims and Continuing Claims tomorrow, some how I think the CPI and Core CPI data that is released on Friday will be another reason to sell.

Remember, we still have the 107.35 spy FP Anna caught about a week ago and the 107.12 spy FP that I caught about 2 weeks ago.  So you can expect to see at least the 107.35 print before we have a wave 2 (or B) wave back up into next week.

So, will we hit that target in the morning tomorrow?  Or will tomorrow open flat or slightly down and choppy around all day finally closing slightly up or even?  Odds are that the day will close green… how much is another story?  Lot’s of people went short, and they usually will try to squeeze a few of them out before the next leg down.

Now this is just based on the past, and it certain could gap down and go to the 107 area first, and then rally back the rest of the day.  If so, I would suggest everyone close out your shorts and reload when the charts get overbought again.

Just don’t forget that next week is opx week and there should be some rally up early in the week to squeeze out the new shorts in the market.  But, if it gets overbought by mid-week then we could sell off into opx.  If that happens then it would be a wave 3 down, and it could be the start of the move toward Dow 8300?  We could be there by the September 9th-20th date.

In that case, the Legatus meeting would be the bottom, just like the one was on February the 4th-6th… when the bottom hit on the 5th at 1044.50 spx.  You remember that one?  I certainly do!  It’s too early to say for sure that we are going down into the meeting, instead of up… as it’s only been one day down now.

Let’s see how the next 2 days work out, and especially how next week plays out.  I’ll just say that I expect tomorrow to give the bears another chance to reload short.  Just wait for that 60 minute chart to reset itself, and get overbought again.  It might not even put in but a few positive histograms… if any?  It’s looking bad right now, but never under estimate the crookedness of the government to surprise the bears.  Just be on the look out for clues… (aka FP’s)

Good luck tomorrow gang…

Red

Time For A Bear Nap...

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