Although larger trends are down, could we be at short term support?
The Monthly SPX pierced long term red up channel support last week and touched Cyan support at the 10/4/11 Lows, but rallied back and closed above its red channel support, keeping the uptrend intact.
The Monthly SPX pierced long term red up channel support last week and touched Cyan support at the 10/4/11 Lows, but rallied back and closed above its red channel support, keeping the uptrend intact.
There was a 29 week/139 TD Cycle that bottomed on 10/4/11 Lows.
The Gold weekly chart is resting on weekly support.
9 comments:
Raj so now are you negating the flash crash cycle date you mentioned last posting?
Mouth, I am only suggesting 10/4 was a short term Low. I didn't say that that the flash crash is off.
when do you anticipate the flash crash?
since we already rallied 6% from the 10/4 it is an obvious statement that it was a short term low.
unless you think the market will rally much higher from here. eg. 1260 and then flash crash.
at that point, flash crash taking the market to a new low per your predictions is less and less likely.
steve,
the flash Crash cycle Low is coming up.
It may not be that flashy anymore.
I doubt that it will be a flash crash. A big crash may be in the cards.
this week?
It would take about 11 trading days involving a lot of days opening higher, but closing lower. We might even get a couple of gap down and go days, and even some up days. I thought an interview with Demark on Oct 5th with bloomberg.com was interesting. He was expecting this short covering rally to end at about 1,888 on the S&P. Today the S&P hit 1,190.15. If we don't close down this week, the crash may not happen. We shall see.
JK
There are just too many Bears around the October Crash Phobia month, which might delay any big declines this month.
The volume today seems to be below average so far, possibly indicating a short covering rally, and not new money coming in. I agree the Put/Call (P/C) ratio is too high for a crash to happen. But I wonder what the P/C ratio was before the 1987 crash.
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