If you sailed into today’s session brimming with bullish optimism over the 20-pt gains in the futures, you probably didn’t have such a great day.
If, on the other hand, you came in with your eyes wide open, having just read our opening post, you’re no doubt grinning from ear to ear.
While a big CL and USDJPY inspired after-hours ramp job gives the impression that the danger is past, it’s not… we could see a replay — a pop and drop. SPX would reach the purple channel bottom at around 1948ish — a 10-pt gain from yesterday’s close.
We put on a short at 1948 (the high was 1950.33) at which point, we began setting downside targets including 1940, 1925, 1900 and, finally, our ultimate target of 1887.71, originally posted Monday in The Century in Review:
I’ll call the target 1882-1887 for now, and it could happen as soon as tomorrow.
The key will obviously be the neckline of this huge Head & Shoudlers Pattern — about 1880. If it’s breached — except for intraday — the bulls are in trouble. If not, rest assured TPTB are still firmly in control.
We don’t nail our targets every day, but it’s been a lot easier since TPTB aren’t tampering with the “markets” quite as much as usual. Dare we hope this is the new normal?
If you’d like to explore how charting can help you avoid “really bad days” and have more great days, check out our membership special. We’re winding it down. For the next day or two, you can get a Charter Annual Membership — normally $1,750 — for a ridiculously low price of $640.24 (why?)
If you already signed up a few days ago, congratulations. You’ve probably already paid for your membership!