6 replies to this topic

[89S10]

Was Friday's selling window dressing that will be reversed on Monday?

 

Or, are those who went long at Friday's close on an end-of-month seasonality hunch going to get slaughtered by the bears?

 

Up more than two percent or down more than two percent on Monday?

 

 

[K Wave]

Watching the leader on the downside Rusty here for potentially HUGE clues in that regard.

 

And it should come on Monday.

 

Yesterday's action "could" have turned into a bottom, but the utter failure to hold the gains, now leads me to belive that a gap down and GO is very possible, if not now the most likely outcome.

 

This hourly chart, which could have "looked" like a bottom, had Rusty gone into full launch mode on Friday, now "looks" instead very much like a near border island in the river between Bull Country and Bear Country, as 1660 is clearly the border line. SO if we gap down on Monday and end well below 1660, rapid rupture speed type move is most likely outcome as we clear customs into Bear Country.

 

So if that island structure is indeed Halfway Island (it just does not "look" like a bottom formation here now), then 1400 or worse very doable, possibly relatively quickly, like by end of October or early November.

 

All that said, if Rusty does not gap down on Monday as I currently expect, then 1670 cash is what the bulls need to climb above and hold first, and then 1700 is the big one that would be an indication that the non-bottomy looking island really is perhaps a bottom.

 

Edited by K Wave, 01 October 2022 - 07:57 AM.

[fib_1618]

We now have a pattern gap to fill on the Dow all the way down to 28,500 from November 9, 2020.

 

I would expect that first thing on Monday, and then we'll go from there.

 

NYA has the same gap to fill down to 13,300.

 

Fib

Edited by fib_1618, 01 October 2022 - 08:00 AM.

[K Wave]

The importance of the area Rusty is at is readily apparent on the longer term chart.

 

We are now right where the Covid meltdown begin...

 

[K Wave]

Value Line Geo much further along in the weakness category....but it IS right at what would likely be last big support area.

 

So not ruling possibility of some sort of bounce if we turn up straight away.

 

But a big Gap N Go down would likely not be good here either.

 

 

And Monthly now starting to look like a Massive throwover top after the September disaster. Yes, it is below the 1998 top area

 

Edited by K Wave, 01 October 2022 - 08:21 AM.

[K Wave]

One to watch this weekend for another possible clue

 

BTC 30 min is now properly aligned for possible start of a breakout down from the HUGE wedgie after the ugly upthrusts.

 

Now we watch to see if it happens...or not

 

In any event, decision should be pretty soon on this huge battle ground just under 20K

 

 

 

[K Wave]

Next Lehman??

 

 

Reuters "assures" us that Credit Suisse has strong capital base and liquidity..

 

Yeah...that's the ticket....