I'll start with Friday's HOD area indicated by Jim.



The first support areas for me are 53.75 and much stronger 49-50.

I agree.....ever since the beginning of september the indexes have been hitting every number and line with perfection. It's uncanny.

Originally posted by jimkane

Great comments, rat. I've not seen anything like this past two weeks in as long as I can remember. The last time? During the crisis. That's why I think we are most likely in a bear.

Little tick ABCD to send it to 66-68, or is it there now?

Not only that, but since the top the size of the moves have expanded quite a bit. Now a 20+ point move is commonplace, and 30 and 40, and even 50 point intraday or overnight moves, on zero news, are starting to happen. When we get 'news' they may expand to 70-100 point moves. When have we seen that last? Yep, the crisis. People are not talking about this, which makes me think is is likely.

Originally posted by rat89

I agree.....ever since the beginning of september the indexes have been hitting every number and line with perfection. It's uncanny.

Originally posted by jimkane

Great comments, rat. I've not seen anything like this past two weeks in as long as I can remember. The last time? During the crisis. That's why I think we are most likely in a bear.

The Russell today moved over 60 ES points equivalent, so it was a bit stronger. That's a big move for a part of one RTH session.

This usually converges rapidly after such a decoupling.





Source: http://www.zerohedge.com/news/2014-10-08/schizophrenic-stocks-surge-most-29-months-day-after-plunging

File this under 'What can go wrong?'.

http://www.zerohedge.com/news/2014-10-08/name-hedge-fund

if they want it, the setup is there for a mad rush to spy 185 area

197 = .50 of the entire move down and .886 of the last swing down to the low today......

Originally posted by jimkane

Not only that, but since the top the size of the moves have expanded quite a bit. Now a 20+ point move is commonplace, and 30 and 40, and even 50 point intraday or overnight moves, on zero news, are starting to happen. When we get 'news' they may expand to 70-100 point moves. When have we seen that last? Yep, the crisis. People are not talking about this, which makes me think is is likely.

Originally posted by rat89

I agree.....ever since the beginning of september the indexes have been hitting every number and line with perfection. It's uncanny.

Originally posted by jimkane

Great comments, rat. I've not seen anything like this past two weeks in as long as I can remember. The last time? During the crisis. That's why I think we are most likely in a bear.

This is a fun little read. When I look at that S&P chart I can't imagine this has any further to go.

http://www.zerohedge.com/news/2014-10-08/greatest-trick-mr-market-ever-played

Anyway, the Fed minutes basically said the Fed is worried about a growth slowdown (too funny, since there is no growth whatsoever), a strong dollar, the dollar's effect on reducing inflation (which is a very good thing), given they say we need more inflation, a lot more inflation. So, as I said not too long ago, the Fed will soon be ready for the next iteration of QE. They are setting the stage right now. They just said rates will stay low longer than they were recently saying, those rate hikes, well, they just got moved back out. But if the dollar is going to start dumping again, well, then we can look for new all-time highs soon...

Interesting, because this speaks for a monster rally coming. But, it may not apply because it's essentially all machines, so even if people are scared, they have no stocks and no money to act on it, so it's 'academic', as they say.

http://www.zerohedge.com/news/2014-10-08/how-investors-feel-after-best-day-three-years

ha ha ha ha ha! Thanks jim ;)