From Nov 24
We should see a fast selloff to SPX cash 1360, virtually giving no opportunity for anyone to position short. This is a unique point in the price structure where the pattern, price-action and the momentum are all converging to a sell !
The selloff came right on schedule and as i said the nastiness gave very few people a chance to position themselves for the decline. The only folks who probably profited from today's decline were those who were already short. Many would have thought i was nuts when i made that call on Nov 24. I don't make these calls until everything in my work lines up.
We should see a fast selloff to SPX cash 1360, virtually giving no opportunity for anyone to position short. This is a unique point in the price structure where the pattern, price-action and the momentum are all converging to a sell !
The selloff came right on schedule and as i said the nastiness gave very few people a chance to position themselves for the decline. The only folks who probably profited from today's decline were those who were already short. Many would have thought i was nuts when i made that call on Nov 24. I don't make these calls until everything in my work lines up.
Now what was noteworthy today was the nasty breadth and the heavy volume on the selloff. In the first hour of trading 400,000 ES contracts changed hands. I think for anyone who watches the tape, it was a no brainer that the day was going to end badly, closing at the low tick of the day.
The NYSE A/D line was 12% : 78% and so was the Nasdaq A/D. The Nasdaq volume A/D was 7% : 92%. That pretty nasty internals folks !. Also noteworthy was the fact that the Nasdaq breadth MCO broke below the November lows, which means this is not going to be a one day affair. So we are in a ST downtrend. The VST selloff should end in the next 1-2 days after making a complex bottom on the hourly momentum, before we see any sustainable bounce. My ST target remains at SPX cash 1360.
I actually covered my shorts today, half at 1390 and the other half at 1383.25. All posted in real-time on traders-talk.com
So far, no IT pivots are broken. So Bottomline ST bearish, IT/LT bullish.
The NYSE A/D line was 12% : 78% and so was the Nasdaq A/D. The Nasdaq volume A/D was 7% : 92%. That pretty nasty internals folks !. Also noteworthy was the fact that the Nasdaq breadth MCO broke below the November lows, which means this is not going to be a one day affair. So we are in a ST downtrend. The VST selloff should end in the next 1-2 days after making a complex bottom on the hourly momentum, before we see any sustainable bounce. My ST target remains at SPX cash 1360.
I actually covered my shorts today, half at 1390 and the other half at 1383.25. All posted in real-time on traders-talk.com
So far, no IT pivots are broken. So Bottomline ST bearish, IT/LT bullish.
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