.... seems like... market won't go ahead and drop all the way here .... .... because it could do more damage to more accounts by making a run up ....and coming back later.... .... not a prediction.... just a thought
there we go missed stopout by a tick taking second profit here at 1524.75 holding last unit short for new lows with a BE Stop
sold 35's bought 26's... all cash in equity allocation accts. done for the day, will leave the last move for others, close family n friends in full cash positions, itching to buy it.
Intermediate-term perspective: Measured move calculation... HI 1586.75 (10/11/07) LO 1492.50 (10/22/07) HI 1557.75 (10/31/07) --> Projected LO 1464 Coincidentally, 1464 would be precisely a 61.8% fib retracement of the advance since the August swing low before the first Fed discount rate cut. Nice confluence there.
I hate to say it but if this market negates 1524-1525 zone we are most likely looking at a decline of 100-200 pts..... The trend is your friend until its about to end... If this zone is taken out it is leaving a big clue. Now by taken out I mean a confirmed move below. One instance, would be a 60 min bar that opens below the zone and closes below it without trading into the area of the zone, also known as a breakoutbar. Until then... the market could still move to new highs
stopped out at BE on last remaining unit... flat awaiting another sell signal possibly in the 1530-1531 area.