5 downs

For the first time in quite a while we are starting to get intra-day 5 downs instead of the typical abc down. As well as the the bigger picture 5 down off the last top on SPX that started on 10/20...it is even visible on the daily chart.

Edited by mini-trader, 11 November 2009 - 11:16 AM.

Of the indices that I watch the Russell 2000 has the best chance of complete breakdown and it seems to be leading the charge.

Of the indices that I watch the Russell 2000 has the best chance of complete breakdown and it seems to be leading the charge.

Yeap! Down she goes as the dollar up it goes!

GS.

I think this is what happened;

We were supposed to have the late stocks such as small caps to bottom today, I expected a retest of 1080 gap below due to the weak breadth yesterday. Instead Fed pump this morning went into the smaller companies in financials and materials --RUT is full of these. So, the breadth figures held up for the morning, then this last exhaustion gap got closed instead of testing the gigantic 1080 gap below.

I tend to think this is the most bullish breadth and price action at the end of the last bit of 84-90 day cycle low that we have been having since last Tuesday or so. I tend to think higher until Thanksgiving now that the major cycle low is behind. If the market does not sell off into the close the breadth will have an FLD break upward...

This is all within the consideration that the last of day of the cycle low 84-90 day was today. If the market fails and closes the 1080 gap, we will be most likely in a trading range still with upward bias. Only a close below 1040 by November expirations (next Fri) will change the trend down...

Edited by arbman, 11 November 2009 - 11:45 AM.

Today could mark the swing high..what we need is a decent volume and close at the days low more or less..remember most traders would take is as resistance rejecting prices..

Today could mark the swing high..what we need is a decent volume and close at the days low more or less..remember most traders would take is as resistance rejecting prices..

FOr the start I am looking at es 1085.

Today could mark the swing high..what we need is a decent volume and close at the days low more or less..remember most traders would take is as resistance rejecting prices..

FOr the start I am looking at es 1085.

We have a clear ABC up on all indices. from the bottom 6 days ago....SPX sub 1000 will be the next swing low.....

GS

Of the indices that I watch the Russell 2000 has the best chance of complete breakdown and it seems to be leading the charge.

I think you are seeing what you want to see, not what is really happening.

If this market was about to fail, RUT would be falling apart by now. Exactly the opposite happened, if the market is holding up today, it is because RUT is holding up. The large caps are extending their consolidation after the incredible pump job went into them. The pump is now benefiting the small caps instead of the large cap energy stocks.

The market is using the liquidity to grow, not to waste since the cycle low. Once we see day after day energy leadership, it will be different, but I do not see it right now.

Today could mark the swing high..what we need is a decent volume and close at the days low more or less..remember most traders would take is as resistance rejecting prices..

FOr the start I am looking at es 1085.

We have a clear ABC up on all indices. from the bottom 6 days ago....SPX sub 1000 will be the next swing low.....

GS

ABC up to a new high?..so you must be thinking an irregular flat B wave finished today..and now a 5 wave C down to take out the recent lows? If so..what was the early October low?..count wise..TIA

Today could mark the swing high..what we need is a decent volume and close at the days low more or less..remember most traders would take is as resistance rejecting prices..

FOr the start I am looking at es 1085.

We have a clear ABC up on all indices. from the bottom 6 days ago....SPX sub 1000 will be the next swing low.....

GS

ABC up to a new high?..so you must be thinking an irregular flat B wave finished today..and now a 5 wave C down to take out the recent lows? If so..what was the early October low?..count wise..TIA