we could spend a lot of time in here zig zag ing, holding the 1100 to 1200 area,this would mean a base is being put in,if the selloff should continue,the rally would be short,for the bottom to be in we need to build a base first and massage this area. The end of a big move,or the beginning of a direction change is usually a lot of zig zag action,which we've been getting,
At this moment, how many S&P500 stocks are in bullish state? Look at this chart. In July 02 bottom, the number is 12%, in Feb 08 it hit 14%. We are sitting at 20% right now, so there are still rooms to drop. Calling bottom here for longer term swing is a bit early. If you have to pick the bottom, wait until it is below 10%. It is better to wait for the chart to turn to upside and buy the retracement, IMHO.
Your analysis is spot on ammo, there's major divergence on the higher time-frames and a lot of opportunity for anyone who trades that style and holds for the major moves. What I see on the chart corresponds to the zone you refer to ... contrarian players only need apply. Good trading to all. *** Excellent market analysis during the massive downpour B1S2, you're obviously in this game for the long-haul.
Downside, several minor levels between here and there. YM 9880 ES 1035 Upside, if it flys minor levels(not listed) will be meaningless, imo YM 10640, 835, 11025, 118, 180, 305 ES 1107, 1150, 1165.5, 1200, 1227.75, 1250 Be safe, Osorico