I am still maintaining my shorts here, will sell some as the markets drifts lower. All the short covering has finished. Which means we should be drifting lower as I mentioned.
This bull flag forming should pop higher into the close or tomorrow morning. After that I think we’ll rollover into a nasty wave 3 (multiple wave 3’s) down… a crash wave! A possible target is the gap window at 1206 spx, but I’m just guessing there. Regardless, after the early morning exhaustion move up, I’d be looking to go short no matter what the level actually is.
That’s good news for us bears nuggy, as the more people are bullish the better the odds of a crash. People aren’t going to expect a crash if we rally 20-30 point on Monday and then roll over on Tuesday. Most will think it’s just a “B” wave down in an ABC up move, only to watch it continue down lower and lower throughout the day, taking out every level of support on the way down.
What I’m looking for here is a nice rally on Monday, closing at the highs. Then possibly a gap up on Tuesday morning to make a slightly higher high, and then to tank the rest of the day as the bulls keep buying the dip on the way down and the bears sit on the sidelines waiting for the “C” up to finish so they can get short at a higher level… which won’t likely come. I don’t know if this theory is correct or not, but we’ll find out by Tuesday I guess.
I am still maintaining my shorts here, will sell some as the markets drifts lower. All the short covering has finished. Which means we should be drifting lower as I mentioned.
This bull flag forming should pop higher into the close or tomorrow morning. After that I think we’ll rollover into a nasty wave 3 (multiple wave 3’s) down… a crash wave! A possible target is the gap window at 1206 spx, but I’m just guessing there. Regardless, after the early morning exhaustion move up, I’d be looking to go short no matter what the level actually is.
The New Moon usually produces a high in the market within 2-3 days after, and it just happened on Friday the 25th…
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3729231
Nice Scotty, but I do see one more early morning push as possible… then we tank. LOL
Here’s you’re morning quick video update…
http://www.screencast.com/t/DB4tkgbjG
Red & All,
Looks like the market left the station a day early !
Mr. Markret loves to keep us off balance. Check the last 2 posts.
http://markethighsandlows.wordpress.com/
http://content.screencast.com/users/Annamall2/folders/Jing/media/27560486-c420-4f55-ac3b-e127b649a5ba/00000438.png
ES Resistance levels: http://niftychartsandpatterns.blogspot.com/2011/11/s-500-futures-resistance-levels.html
That’s good news for us bears nuggy, as the more people are bullish the better the odds of a crash. People aren’t going to expect a crash if we rally 20-30 point on Monday and then roll over on Tuesday. Most will think it’s just a “B” wave down in an ABC up move, only to watch it continue down lower and lower throughout the day, taking out every level of support on the way down.
What I’m looking for here is a nice rally on Monday, closing at the highs. Then possibly a gap up on Tuesday morning to make a slightly higher high, and then to tank the rest of the day as the bulls keep buying the dip on the way down and the bears sit on the sidelines waiting for the “C” up to finish so they can get short at a higher level… which won’t likely come. I don’t know if this theory is correct or not, but we’ll find out by Tuesday I guess.
Good catch BH…. I missed that one. That’s a sign in my opinion that something wicked comes this way…