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... Red Dragon Leo

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... Red Dragon Leo

Here’s what I see for Monday… http://screencast.com/t/fmRKudNu

... Red Dragon Leo

First upside target should be the 1860 area for next week, with Monday/Tuesday being the likely time period for it to hit. That’s from a falling channel and goes lower everyday, so Tuesday it could only be 1855 area.

All of next week should be choppy with wild swings up and down, but “if” this forecast is correct we shouldn’t take out the current low nor take out the current high. We should be range bound with and upward bias all week.

Then Friday and Monday (the 21st) would be the ideal time to make a squeeze move up for the bulls, with a final exhaustion move up Tuesday morning the 22nd. At that point (assuming we don’t make a higher high [double top is fine] and stay lower then 1897.08) I’d expect the start of a larger wave 3 down to start.

This implies that we completed an ABC move down today (since that high) to make a larger wave 1 down. Then the larger wave 2 up should be full of “hard too read” moves to shake out both bulls and bears before ending on the 22nd and therefore allowing for the larger wave 3 down to start.

... Geccko23

So this was a Fed minutes-induced pop today although the market was already rallying into the release. Sounds like a technical oversold bounce.

... Geccko23

Is the Nasdaq imitating the action of the SP leading up to and on September 8, 2008? A certain component of a certain little indicator did bounce to the 0 line today while the Nasdaq version finished slightly negative. The Nasdaq is still underneath its 50 day average and just like the bounce on the aforementioned date did not reach its 50 day average.

I did finally figure out the 1987 connection to the Men’s NCAA hoops champ Connecticut Huskies but that’s for a later post. UConn, the lowest seeded team to win the title since #8 Villanova did it in 1985. UConn a 7 seed this year “upsetting” the 8 seeded 1 and Doners. Once again Vegas cleans up as the hyped and favored 1 and Doners lose outright.

... Red Dragon Leo

Based on the charts I think we’ll see a slightly higher high tomorrow (then today’s close) and then we’ll pullback the rest of the day and probably just choppy on Friday. The next down move should happen next week from the looks of the charts.

I suspect it will happen early (like Monday/Tuesday) and then rally into Friday as it’s option expiration week. Possibly a little more follow through on that up move into Monday the 21st with a final morning peak on the 22nd… then down!

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