WOW! That was one crazy drop yesterday! I talked about a "fake out" move yesterday and I certainly wasn't expected one that big. I wanted a last move up for a higher high to short but was open for a move down instead, which is what we got. I did not short it as I just didn't know which way it was going to go.
But now that we've seen the big flush I think we are going to see a final rally start today (maybe Friday?) that will last until the end of the month (maybe sooner?) where this entire move down is erased and we put in a new higher high... but not the DOW, just on the SPX/ES (probably the Nasdaq too but I'm positive).
I'm looking for 6120-6140 on the SPX into the end of this year and that will be the final top before we fall off a cliff for real, and the first downside target will be the 533.01 FP I suspect, maybe lower? As for today, I'm looking for a double bottom test as it's pretty clear that yesterday was a wave 3 down inside a C wave of some degree.
We just need the wave 4 up (which started yesterday after the low) and the wave 5 down to finish it. Then it's up, up and away into the end of the year. I'm looking for a long today, and bummed that I missed the short but that's life.
Have a blessed day.
Homebuilders are crashing and new lows are exploding. There might be some more downside with some divergences. I have one experimental bottoming indicator that will probably take a few days to achieve and others that aren’t too close to achieving.
Negative breadth is close to hitting max levels and is pretty extreme so it probably needs to put in some divergences.
The SP500 and Nasdaq just caught up to the rest of the market that was already freefalling.
The SP 500 might be looking for support at the 100 day average. The Nasdaq is way above that. Jupiter in its 1929 location is finally catching up to the market.