The market’s off 16.60 at 1341.05.  I think this is the “Y” from Daneric’s W-X-Y count and a result of the bearish Gartley pattern we saw conclude yesterday.


While SPX could easily continue down, I’d be watching for a bounce at:

(a) 1333 — the long term trendline from the Oct ’07 high (stopped the last decline cold); or,

(b) 1329.17 — the previous low, and support from the trendline beginning 4/18.

If we can clear those levels, I’ve got my fork ready. Otherwise, I’m thinking one more frenzied, pull-out-all-the-stops push to 1370-1390 before P[3]’s finally here.


P[3]? — 2 Comments

  1. Closed the above position at the close for a quick 10% gain because:

    (1) the lack of momentum in last hour

    (2) the bearish engulfing candle on eminis dailies

    (3) I'm a spineless wimp.

    I suspect lots of folks are waiting to see how tomorrow's shapes up before committing. I'll be one of them.

  2. We got our bounce a few points north of expectations at 1336. Once again, that Oct '07 trendline held. Putting on a short-term trade here — bought a few May 137 SPY calls at .22 for the 30-40 point rebound I'm expecting over the remainder of the week.

    I have every expectation that the gov't will gin up some pretty numbers for initial claims and PPI in the morning and all will be wonderful in the world again.