Your thinking is correct. The bounce will be small, as to keep the bulls trapped, and not allow the bears a good spot to get short. This all assumes the next leg down has started… which I believe it has.
Yesterday was a perfect example of how they squeeze the bears out, just before they tank it. Then they gap it down the next day (today) and make them chase the tape, or wait for a bounce that never comes.
Of course meanwhile, the bulls are trapped and also waiting the bounce that never comes too… only they want the hell out their position, while the bears want it.
If this is the next leg down… bounces will be very small.
i feel like yesterday's big spike EOD was used to flush out a lot of bears so they could bring it down today. and i think a lot of bears were caught on the sidelines and had to just watch this tape today wishing they were in. so i think we have a situation where these bears are waiting for the next bounce to get in. which seems too easy. so my thought is that if this really is on it's way down, we won't see much breather/bounce for a while. if we do, it could be a bear trap. would love to hear your thoughts on my logic? thanks.
If you remember back in March of 2009, the SPX closed at 666… why? Because certain numbers are used by “them” to tell their buddies when big turns are coming the market.
In that case, it marked a bottom. The market rose for the next year from that level. Sometimes they are short term bottoms, and sometimes longer term. They could be tops too…
They are simply turning points… it's up to you to tell which direction it's going next. Since yesterday put in the high on this 2 week move up, I believe the closing price is saying that “the high is in”, and today started the next leg down.
Why 666? … it's the mark of the beast of course. Other number's would be 911 (the number you call for an emergency) and 212… which is the boiling point of water.
In other words, today's close of 106.66 spy tells me that… “the shit's about to hit the fan”… and that's about as simple as I can explain it. Hope that helps…
Thanks for the compliment. I'll do a video on my weekend post, but I see more selling coming. This week closing out negative with a topping tail on the weekly chart is very bearish.
If we would have close up this week, (at least above 1090), then I would be leaning more toward a small down move next week, to form a “B” wave down, and then another “C” wave up on the weekly chart.
Now, I'm looking for the 1010 low to be tested again, and most likely broken. They had their chance to close positive this week, but failed.
Those earnings reports could have been faked, so the rally could continue… but I guess they were too bad in reality. If they would have lied better on the reports, then the market could have gapped up out of this falling channel it's been in since the April high.
Failure to get outside of it today is very bearish. They had everything going for them. It's a Friday, with usually has light volume as traders leave early for the weekend. It was opx day, which also “usually” has light volume, as most traders close out their positions by Wednesday of opx week.
While we should expect some bounce back up on Monday, overall I feel the rally up seem finished at this point. I think another leg down is coming next week.
Red , around 4/16 the govt went after GS and the market topped about a week later. Now that they kissed and made up , do you feel they turn the printing press back on and run the market like they did prior to investigation.Great blog , I remember when you started and only had a few comments a week. CONGRATS.
WEEKEND POST is up now everyone…
Yee of little faith. I'm still holding my shorts from yesterday. Huge gains… moved the stops lower. Tis insurance / hedge.
Your thinking is correct. The bounce will be small, as to keep the bulls trapped, and not allow the bears a good spot to get short. This all assumes the next leg down has started… which I believe it has.
Yesterday was a perfect example of how they squeeze the bears out, just before they tank it. Then they gap it down the next day (today) and make them chase the tape, or wait for a bounce that never comes.
Of course meanwhile, the bulls are trapped and also waiting the bounce that never comes too… only they want the hell out their position, while the bears want it.
If this is the next leg down… bounces will be very small.
i feel like yesterday's big spike EOD was used to flush out a lot of bears so they could bring it down today. and i think a lot of bears were caught on the sidelines and had to just watch this tape today wishing they were in. so i think we have a situation where these bears are waiting for the next bounce to get in. which seems too easy. so my thought is that if this really is on it's way down, we won't see much breather/bounce for a while. if we do, it could be a bear trap. would love to hear your thoughts on my logic? thanks.
Yes the bulls should take a break now, like how the bears did last week.
That not a pretty chart… if you're a bull.
DOW JONES analysis after closing bell
http://niftychartsandpatterns.blogspot.com/2010…
If you remember back in March of 2009, the SPX closed at 666… why? Because certain numbers are used by “them” to tell their buddies when big turns are coming the market.
In that case, it marked a bottom. The market rose for the next year from that level. Sometimes they are short term bottoms, and sometimes longer term. They could be tops too…
They are simply turning points… it's up to you to tell which direction it's going next. Since yesterday put in the high on this 2 week move up, I believe the closing price is saying that “the high is in”, and today started the next leg down.
Why 666? … it's the mark of the beast of course. Other number's would be 911 (the number you call for an emergency) and 212… which is the boiling point of water.
In other words, today's close of 106.66 spy tells me that… “the shit's about to hit the fan”… and that's about as simple as I can explain it. Hope that helps…
Thanks for the compliment. I'll do a video on my weekend post, but I see more selling coming. This week closing out negative with a topping tail on the weekly chart is very bearish.
If we would have close up this week, (at least above 1090), then I would be leaning more toward a small down move next week, to form a “B” wave down, and then another “C” wave up on the weekly chart.
Now, I'm looking for the 1010 low to be tested again, and most likely broken. They had their chance to close positive this week, but failed.
Those earnings reports could have been faked, so the rally could continue… but I guess they were too bad in reality. If they would have lied better on the reports, then the market could have gapped up out of this falling channel it's been in since the April high.
Failure to get outside of it today is very bearish. They had everything going for them. It's a Friday, with usually has light volume as traders leave early for the weekend. It was opx day, which also “usually” has light volume, as most traders close out their positions by Wednesday of opx week.
While we should expect some bounce back up on Monday, overall I feel the rally up seem finished at this point. I think another leg down is coming next week.
Red , around 4/16 the govt went after GS and the market topped about a week later. Now that they kissed and made up , do you feel they turn the printing press back on and run the market like they did prior to investigation.Great blog , I remember when you started and only had a few comments a week. CONGRATS.