Below is my simple non-quantitative analysis of the last week based on what i saw in the market. Feel free to shoot holes in my observations/interpretations. Mon: GapUp fails. New Bulls are trapped Tue: After 7 am news, I observed/felt tremendous selling pressure where every uptick was viciously sold. To me this selling pressure felt very unusual. I mark this day as a special day where the Giant Seller manifested himself. Wed: Bulls appear in control again, but they can't take out Tue High. Therefore, in reality Bulls are NOT In Control Thur: Overnight GapDown Makes Mon and Wed Bulls lose it. They capitulate, the bottom is formed, up we go. Are Bulls in control now? NO because Tue Highs are not taken out. Fri: Back-and-forth. Bulls still can't take out Tue high decisively. To summarize: it is taking Bulls too long to undo the damage from Tue, hence the Bulls are not really in control. The Giant Seller is ready to step in any day now to drink some more blood.
lol at RSI on your chart, is that the magical secret of your prediction?? but yeh i agree new lows coming soon
Hell yeah...! The 1111-1114.5 ES zone should tell the tale. if we were to print above this area, be ready for a nice short covering "special day". Under 1084.5 and I'll join your Giant Seller for a ride to 1000. Roll the dice.
"So what's really going on in the markets? Cramer attributed today's market surge to the end of the month tradition of hedge-fund managers marking up their favorite stocks, in efforts to save an otherwise difficult month."
the Chilean earthquake is most like a non-event for the market. as an example, SPY was up after the Haitian earthquake.