We only had 162 million shares traded on the spy today, and usually you will see over 200 million on down days… which means that this move down was more then likely just a technical correction as opposed to some real selling.
In other words, the big institutions haven’t started to dump the market yet. Maybe they are waiting until Wednesday, when the last POMO money going into the market?
Of they have been selling lightly into this rally, as all of last week went no where but sideways. I can’t see them not pushing the panic button sometime this week.
It could happen as early as tomorrow or as late as Wednesday. But after Wednesday, with no more POMO money until October 13th, and the non-farm payroll report out on Friday… I highly doubt the market can stay up this high.
I can see some 200-300 point down days coming late this week and possibly into early next week. For now though, get in, get out, take profits… as Mr. TopStep says…
That means the retracement back up from today’s sell off should peak on Wednesday morning sometime, after the last POMO money is injected into the market.
Don’t know what level it will retrace too, but if today was some kind of wave 1 down, then wave 2 back up should go to one of the Fib’s levels.
I suspect it might be a backtest of the breakdown from the rising trendline. But, today’s pattern is a bear flag… meaning that we might not get any backtest at all?
We could enter wave 3 of 3 down tomorrow, with wave 1 down and wave 2 sideways happening today? It’s not looking very bull friendly, that’s for sure.
Hi RED
I published some new updates at the blog worth reading
Did you or anyone here request to follow me at twitter?
If not, then please go there and request to follow me-
trying to get to 200, now at 155 followers
twitter address is at JaywizFinancial
thanks
http://jaywiz.blogspot.com
POSSIBLE repeat of May 6th tomrrow w no comeback
NO guarantees, but its looking possible
Jay
That tells me there’s more selling to follow… possibly into the close? If not today, then we’ll likely chop around with a slight upside bias until the short term oversold conditions are worked off. Maybe late Tuesday or early Wednesday? Hard too tell right now? But more selling is coming…
Jay,
Make it easy for people to follow you… post your twitter direct link here.
Red
Of course my twitter direct link is (for anyone that didn’t know?):
http://www.twitter.com/reddragonleo
We only had 162 million shares traded on the spy today, and usually you will see over 200 million on down days… which means that this move down was more then likely just a technical correction as opposed to some real selling.
In other words, the big institutions haven’t started to dump the market yet. Maybe they are waiting until Wednesday, when the last POMO money going into the market?
Of they have been selling lightly into this rally, as all of last week went no where but sideways. I can’t see them not pushing the panic button sometime this week.
It could happen as early as tomorrow or as late as Wednesday. But after Wednesday, with no more POMO money until October 13th, and the non-farm payroll report out on Friday… I highly doubt the market can stay up this high.
I can see some 200-300 point down days coming late this week and possibly into early next week. For now though, get in, get out, take profits… as Mr. TopStep says…
I see a little afterhours buying… not sure what it means though?
Yes, tomorrow and Wednesday it seems…
http://www.newyorkfed.org/markets/tot_operation_schedule.html
That means the retracement back up from today’s sell off should peak on Wednesday morning sometime, after the last POMO money is injected into the market.
Don’t know what level it will retrace too, but if today was some kind of wave 1 down, then wave 2 back up should go to one of the Fib’s levels.
I suspect it might be a backtest of the breakdown from the rising trendline. But, today’s pattern is a bear flag… meaning that we might not get any backtest at all?
We could enter wave 3 of 3 down tomorrow, with wave 1 down and wave 2 sideways happening today? It’s not looking very bull friendly, that’s for sure.
APPLE Continues to climb down
hey red
Is there any POMO activity scheduled for this week ?
TIA
Hi RED
I published some new updates at the blog worth reading
Did you or anyone here request to follow me at twitter?
If not, then please go there and request to follow me-
trying to get to 200, now at 155 followers
twitter address is at JaywizFinancial
thanks
http://jaywiz.blogspot.com
POSSIBLE repeat of May 6th tomrrow w no comeback
NO guarantees, but its looking possible
Jay
The eVent is now happening. theVixis comfortably above its 50day average.
I said the same on my Sunday pm post as them good to hear we are in sync 🙂
Vix I mentioned last night about to pop and looky! 🙂
That tells me there’s more selling to follow… possibly into the close? If not today, then we’ll likely chop around with a slight upside bias until the short term oversold conditions are worked off. Maybe late Tuesday or early Wednesday? Hard too tell right now? But more selling is coming…