1270 would stop the market right on the neckline and if it happens tomorrow would coincide with the new moon.
But 1220 would be more of a may 2010 flash crash type of move...
which one and how do we figure out if it will be one or the other ?
inquiring minds want to know....
if you look carefully at the May 2010 price bars right before May 6, 2010 can see that the setup looks quite similar now to that one.
Interestingly if we look at the current 14 day RSI value for the current sp500 I get a value of about 43 which was very close to the value we had on May 5, 2010 the day before the flash crash in may 2010.
RSI BOTTOMED on the May 6, 2010 flash crash near 30. I think I just answered my own question. RSI value of 30 will mark the intra day low for this panic decline.
SPX - 1258 +/- 5pts
