1150 should hold this decline

Just a roadmap using 1987 analogy --the cycles are about 10% faster now, but the market is also trading 4 times higher level;

SPX 1170 is the line "they" will defend and that's exactly from where it jumped up.

Edited by redfoliage2, 05 August 2011 - 11:19 AM.

dec gap fill c. 1164 - done. we can bounce right at 12.10 - huge push up on euro - they want a bounce

Edited by dasein, 05 August 2011 - 11:29 AM.

I went long into that decline, it is insane though, P/C ratio soared, a squeeze was in the making, even if it didn't come today... From here, if there will be a heavy lifting, it has to come from Fed...

Edited by arbman, 05 August 2011 - 12:07 PM.

indeed, this was the last stand at the gap - had to come in but nice timeing, maybe folks will want to hold over the weekend. if they can engineer another scorch on monday, it will be fear of getting left behind.

I think they will let this cool for a day on Monday and try on Tuesday again... After all, this is the most volatile reversal and breadth is still negative, it is only a doji, I would opine that it needs to test the lows, even perhaps a lower low, then the selling will be proven dried up --though I doubt the put buying will diminish at all and it should add fuel to the next squeeze-- and then the ignition... I really do not want the economy to fail, but you know you cannot help it, sooner or later these squeezes and engineered rallies and what not will also dry up as the speculators capital will consolidate into the hands of the bigger money and then the put support erodes and it plunges further down, probably in a few months though, this decline looks about done... It came both with GDP revisions and lowered credit outlook, it couldn't have been worse honestly, the market took it pretty well.

Using one of K Wave's ideas combined with 1987 analogy would project 10575 on the DOW.

Yes, more downside is likely, btw, DAX is having its own 1987... So far down ~17%...

They won't announce anything this weekend, we are having a worldwide reset of asset values and all countries will eventually default.

China is about to have its own 1929 due to its property bubble collapse... This is a must read:

http://en.wikipedia....property_bubble

I guess statistics don't matter anymore... My mean reversion systems all went long yesterdays close.