sal i agree, but the range for sep is 1303,1220,we're still going down but if all the sheep are short,the shepherds will take it back up
My prediction: 1. We will rally big and end well in green or 2. We will close widely around 1760 NQ and 1224 ES and this close will be swing bottom (as minimum for next week). If 1. will happen than it will be tested more carefully but still it will be about double swing bottom. I strongly believe that buying todays low will be very profitable (unless will not happen some real disaster during weekend).
John Murphy has a book called Intermarket Analysis, kinda dated but gets into what you are talking about; he relates how bonds effect commodities to stocks, etc. You may want to check it out. Remember the USO trading at 45? The idea is commodities ultimately drive up bonds, etc.
stage 6 commodities go down stage 1 bonds turn up (stocks and commodities falling) right now stage 2 stocks turn up (bonds rising, commodities falling) soon
All the sheep were positioning long with talk of 1320, and now they are waiting for their chance to short. Remember it's always best not to have any sheep on board as they only impede the move, they always take profits to early. jagmot is the black sheep
One thing to keep in mind is that indices now jump to their respective s/r levels much faster than before. A 2 week move back in 2002-2003 can be accomplished in 2-3 days now. If we are going to bounce, it will be done fast - like now, or never.