The overnight (so far) low of 829 is exactly a 50% retrace of the move (March contract) from 739 to 918.75.
I started to keep an eye on these 3 and 6 am reversals what Volente mentioned, and so far it has been working good. Last night a bottom exactly at 3 am followed by 10 pts up, although it didn't last until 6 am. We actually had another bottom at 6 am that went up 8 pts... I was thinking about this 50 billion ponzi scheme, that it is not really a loss, if it is a real ponzi pyramid, but a redistribution of money. In a ponzi sceme the late comers pay off the people at the top of the pyramid. So that money went to someones, it didn't evaporate (as compared to a stock market meltdown)... (Ponzi was short of a genius, he just forgot to quit while ahead)
I hate them doing that overnight ... I was not that bearish yesterday at the close because what happened was pretty much expected. Market landed in the top buy zone across many time frames. But now the up trendline from daily / hourly / 30-min are all broken (they mark different support levels as their resolutions are different), do you think the likelihood of resuming down trend gets more likely? Edit: I meant daily / weekly down trend.
WARNING: Shorts should be alert to possible Government intervention in the Big 3 Auto debacle. Now that Congress has rejected the bailout bill, the Govt can step in and provide the 15 billion or whatever is needed --- this could happen today with an announcement of intent, and details later, or Sunday evening after weekend work on it. Would advise Stops in place for day trades and flat at Friday's close. Also, with $/yen at 15-year lows expect Central Banks intervention. I am looking for possible spike down to 809 with resistance at S2 846 and S1 861
ES rallying strongly ..... And so it came to pass --- 09:07 White House says willing to consider use of TARP funds for automaker aid - - Reuters