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... Red Dragon Leo

I told her that Ben, and she agreed that it could happen? It might still happen, but at this point I seriously doubt it. So, we're off on this call. You can't get every call right, but you can post what could happen, and where support lies.

... sundancer390

no, they will throw some bait to the bears in the morning as they might knock out the stops below the daily max contain pt. @ 110.12 but nothing too far away from that

they haven't let the trapped shorts out all week, and I don't see today being any different

I checked the tape yesterday after the close and didn't see the 107.38 print, now on tuesday there were several prints on the tape @ 107.82, we already know this move is manufactured because of the 1127.38 gap

the monthly setup is very important as it will tell whether we are going to the SPX major de-leverage area @ 965.95

... bensjoyce

and Mae West said, “Why don't ya' come up and see some time”!

... bensjoyce

On her free blog she states: “but I am looking for around 1072 tomorrow sometime”

... Red Dragon Leo

And in-between the open and the close, do you expect some panic selling in the morning, only to be bought back up in the afternoon? I'm just trying to make sense of that 107.38 fake print from yesterday, and how it ties in to the picture.

... sundancer390

yep

... Red Dragon Leo

Ben,

No one said that we are going to 1072 tomorrow. Only that it's major support and should stop any big fall. Stop buying wildcard puts that are never going to pay off. You should only be doing spreads, never straight puts.

... Red Dragon Leo

So, we need to open above 110.12, and close above 110.35… is that correct?

... sundancer390

update 8:04 est
SPY currently trading 110.39

the de-leverage area established yesterday for the shortest term regulators is SPY 110.35, I posted this chart after the close yesterday
http://www.flickr.com/photos/47091634@N04/43683

Here's some current setups:
1. SPX 195 min. chart has 7 consecutive higher closes putting it in the 93 percentile for at least 1 lower close, given the current gap the morning session should provide a lower close

2. Yesterday was the 3rd consecutive gap down on a thursday, so next thursday will either be a flat or gap up.

3. If this gap holds for the next hour and a half, it will be the 2nd consecutive friday gap down and since the payroll number is in 2 weeks, next friday will likely be a flat or gap up because if they were to gap the market down next friday, it would give away the payroll number given the 3 consecutive gap down setup

4. Daily max containment pt: yesterday was the second consecutive higher close over the max containment pt. which was the first time since the dancing with the max containment pt. began on 1/22/2010. SPY 110.12 area is of interest @ the open

I will talk about the monthly setup this weekend, but what I'll say know is that in order for a multi-month reversal to take place we'll need a monthly close over $SPX 1115.10

... bensjoyce

I said yesterday that we would bottom out when London opens at around 1090. We bottomed when London opened at 1092.

I hope I”m wrong I didn't take my own advice and listened to Hot Babe options thinking were going down to 1072. That's too far concidering the news, bought two put that are now underwater.
hope it goes down a lot more