....i am seeing ... either a scallop... which will provide a bounce.... .... or possibly another falling wedge beginning... which would take much longer
Adding to Spectre2007's post on dispersion fields. In addition to the mean deviation, there is a random scatter that must be factored in. Thus the need for the cover trade. If-Then-Else. Concepts in physics and civil engineering can also be applied to the markets. Will we see the gravitational pull to 50-43 today?
If you're into Elliott Waves, here's my take: <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1701588 width=600> I believe we have completed wave 5 of wave 2 (up), and now begun wave 1 of wave 3 (down). I believe wave 3 will take us down to ~1300 and possibly further. For position traders, I believe this is an excellent time to establish short positions to be held for months. Click on link below for full-size chart.
Spectre- it is snowing this morning. What's the psyche forecast for a snowy Tuesday morn? Are they optimists or pessimists today? I have jotted down the same exact notes about this over the past five years. Amazing similarities in thinking.