The Bulls fell hard at the end of the day...
The market looked extremely weak all day today, as the 60 minute chart pushed hard to work off some oversold conditions. Unfortunately, the 15 minute chart didn't help much as it was already in overbought territory, which meant that the 60 was trying to swim upstream against the monthly, weekly, and daily charts that were pushing it back down.
Tomorrow morning we have consumer confidence data and FHFA housing price index out at 10 am. Not much else to move the market, as there isn't any earnings announcement on any company that can move the market. Too me, it's a little frustrating as I could have gotten back in short at the high this morning, but I was expecting Tuesday to put in the high for the week.
It still might happen, but a gap up needs to occur in the morning. The downward sloping trendline has held the market tight in a falling channel for several days now. If the market can gap open tomorrow, and run higher, the next major trendline of resistance (from another falling channel) is around 1100 spx. What a wonderful place to go short... if the market would be so kind.
We could continue falling, without stopping until we hit 988 spx area, which is the 20 MA on the Monthly chart. I do believe that will stop the falling, but I won't be going long there. I will exit most of the shorts I will hopefully purchase tomorrow, but I'd rather stay in cash and not get killed by the falling VIX on the ride back up.
So for tomorrow, it's pretty simple... a gap up should produce a nice run up to at most 1100 spx. A flat or down open will keep the market inside the falling channel and the selling will continue.
Best of luck to everyone...
P.S. As was surfing around a little bit, I went over to "Follow the Money" (link on Red Pill sites on my blogroll), and started watching a video about a earthquake watch until the 27th, and it started to bore me as it was getting too technical. But at the very end his stated the possible places for the earthquake... the lower tip of South America.................... and Baja, CA!
You want an excuse to blame the coming crash on... how about an earthquake? God have mercy on those people if it does happen. I pray it doesn't, but with or without the earthquake... the technicals say the market it about to puke!