There would certainly be a sick long setup if this occurs. I want to see a break of yesterdays lows on huge volume. My order is in.
IMHO the reason that did not happen yesterday is because of the FED intervention with the coordinated National 50bp rate cut. we could still bounce a little due to oversold conditions but I don't see it going much higher. Any rally will be met with strong resistance selling pressure.
http://www.trade2win.com/boards/futures/26559-e-mini-sp-500-a-60.html post 600.. a good 12-16 hrs before it actually happened. Bush is good for something.
I was looking at the weekly charts, and I found another nice example of the dragon pattern. It is on all 3 indeces, best looking on the SPX. First bottom mid-March where it runs up 180 points (Height of the W), the second bottom is the beginning of July. The W failed 110 points from the 2nd bottom (a bit more than half of the height) and then promptly fell the required 180 points from the failure, where it rallied a nice 130+ points, back to the SMA. The last 3 red candles are not part of the pattern...
this is going to be a CLIMAX FLUSHOUT with huge volatility, so I would recommend patience and not trying to get the bottom too fast. dumb money was buying yesterday, thinking bottom! bottom! dumb money must give up and liquidate everything, before smart money pushes it up. JMHO.
for how many people is 1000 the magical line in the sand... thats why market will oscillate through it.. repeatedly..blowing breakout players. the market moves.............. once your inline with how it trades, your frontrunning the market. 974 next..
We are having one right now, should fall to 980ish... Explanation: Height is 18-20 pts, failure was at 999...Projected fall to 980 Edit: at 83 now... Got love my little dragon!