Right into the sweet spot about 10800 that I mentioned and the Smart Money begins testing the market for a quick 250+ point bounce.. Test 1 - brilliant Test 2 - not good at all, fails Test 3 current - this should be pump the market but because of the failure it is retest Easy to short down to 10,800, Long on test as it's obvious, short on test failure as it's obvious and now take the signal that is about to unfold
Thanks for the updates. This was the channels chart I had going, looks like we've broken through both of them. I guess I should start keeping track of previous highs/lows as well. That's a pretty scary trajectory you have drawn on the left chart in the dow map pic.
Any thoughts on this chart? --edit-- sorry for the double post of it, already saw your reply in the other thread.
The Fed's have already acted, and acted, and because they are going to act again confidence is evaporating all round the world that the printing press can solve a gigantic and increasing debt problem. You should read up on the Japanese approach to beating the crash of '87, how they manipulated the market and claimed to have a new economic paradigm that was superior to the west and look where pumping the system led them to. From the global powerhouse to the doghouse of a mess they have been in for decades. Oh that the answer was as simple as the Fed will save us. Anyway, they have been dropping enough hints that they don't intend to.
Yesterday when the Dow was falling like a stone I was looking for support to show up at 10,800 approx. and that was about 3 hrs and 200 points before it reached that level. I posted the 5 min Smart Money test followed by a fail which required a retest. Today opened with big buying followed by a successful retest. The 60m chart has confirmed buying so we have a real base thus the line in the sand is clear. How long the base will hold is quite another question but there was a great buying opportunity on the 5 min chart when a lot of traders were scared into the sidelines.
Daily bar reads well on volume as it reverses on the weekly support that you can see on my weekly charts. This is much stronger than the prior 5min reversal that I had doubts about its durability. On a break down from the rising wedge there is often a pull back before the real trend down sets in and I expect this to be the precursor to the real move. Volume suggests this is a true attempt to make that move now but keep in mind that this is a counter move and this is a minor support. Volume gives an excellent warning level.