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[dcengr]

Did you think it was going to be a v-rally on the daily?

SPX put in a complex bottom on hourly and that was good. But NDX did not. That's what dragged things down today.

My guess is..

1) We get some real capitulation and washout and it will mark a bottom for weeks/months
2) We get a semi-bottom where-in we'll have to come down again for double bottom
3) We get a fake bottom where it will plunge through the lows after a wave 'b'.

The more time spent making a bottom or more scary it is, the better.

If you look at the last time CPCE spiked this high, the may flash-crash, you can see the price pattern that resulted. That is, a rally, then a drop, then a bit more sideways before a bigger rally followed by a drop.

http://stockcharts.com/c-sc/sc?s=$CPCE&p=D&st=2010-05-01&en=2010-6-01&i=t36028296739&r=7017.png