Mini 911 market attack

Most markets work in sync these days and the charts are Aussie but still pertinent. The first chart is a daily of the period up to and including 911 which is good as they didn't shut down like the US. The second is an hourly chart of the current period from Jan 11 so is a more minor degree. Both are or were extremely negative formations. The have lower double tops, a double bottom that breaks, a failed test of the double bottom and then sharp declines. The blue arrow indicated where we are. Will it continue?

Hi, What target and time frame are you looking for re this drop on the ASX ?

Hi,

What target and time frame are you looking for re this drop on the ASX ?

Bear

Because we are comparing hourly (including 24 hour trading) against daily, it could complete the pattern by Monday at the earliest or the next trading day at the latest I suspect.

Australia has a holiday on Tuesday which complicates things and in fact may be a reason to end weak on Monday.

Of course that won't happen if the US has a very positive session today (Friday) you would think.

Believe it or not the Aussie market seems to lead the US market most days. Of course it is not leading the US but seems to have an uncanny sense of what the US will do in its next session. It is interesting in that you would think that US overnight futures would then be paralleling the Australian market but it seems not to work that way most of the time. I can only suspect that US parties are participating in the Aussie market but for some reason don't wish to show their hand in the US market. Is it because of data sensitive inside information that would be too obvious if traded in the US. I have my suspicions but no proof.

Anyway, the Aussie market did not rebound today to any degree so does not see a huge rebound in the US this coming session. Of course we don't always get it right or it would be too easy. Still I think if a study was done on following the Aussie lead then it would show it as a nice system.

Hi,

What target and time frame are you looking for re this drop on the ASX ?

Bear

Because we are comparing hourly (including 24 hour trading) against daily, it could complete the pattern by Monday at the earliest or the next trading day at the latest I suspect.

Australia has a holiday on Tuesday which complicates things and in fact may be a reason to end weak on Monday.

Of course that won't happen if the US has a very positive session today (Friday) you would think.

Believe it or not the Aussie market seems to lead the US market most days. Of course it is not leading the US but seems to have an uncanny sense of what the US will do in its next session. It is interesting in that you would think that US overnight futures would then be paralleling the Australian market but it seems not to work that way most of the time. I can only suspect that US parties are participating in the Aussie market but for some reason don't wish to show their hand in the US market. Is it because of data sensitive inside information that would be too obvious if traded in the US. I have my suspicions but no proof.

Anyway, the Aussie market did not rebound today to any degree so does not see a huge rebound in the US this coming session. Of course we don't always get it right or it would be too easy. Still I think if a study was done on following the Aussie lead then it would show it as a nice system.

Bear

Sorry, i realised I only answered half your question. I gave you time but not price.

The market action on Friday did continue the 911 pattern and should be close to a bottom although it still allows for a up to sideways mini move and one final low.

The target is almost too obvious on SPI (Aussie futures). Dynamic lows are monthly 4583, weekly 4598 and daily 4620.

Over night futures closed at 4619! However I expect lower on Monday intraday but not at the close.

Why? I drew a Fib grid on the uncompleted pattern and it projected SPI to 4593/8. The up trend from Mar 2009 is also around 4598.

So good support there for Monday.

It feels like there will be more to come after some bounce but just "feeling".

The key number for me is SPI 4020 if this is more major which is the next step ( 670 or 1340 steps) from 1341 (1992 major low) and 2679 (2003 major low) and also a 50% pullback of the rally from Mar 2009.

Hope this is useful.