My guess is that they want to test the previous low in the ES, so my most optimistic area is between 76 and 82.



Key supports on the way down are at 18 and 6-7.

Of course I'd prefer the market keep going down, even if it means the pig-f#&%er POS Euro has to go up...

Yes. And if you look at the pattern, let's say on M240 time frame, assuming this area works, the Euro will hit at least 1.0540.

BTW, the level he is mentioning on the Dow is about a 1500 equivalent on the ES.

Okay, let me get this straight. Since the evening last night the market has went, give or take, down 60 points, up 40 points, then down 40 points, in three smooth trends, for about 140 points of movement. That's ignoring the multiple 10 point swings along the way. Like I've been saying:

1) This is insanely good for trading, and

2) Holy cow!

And there's a sharp sell off that bounce to a new low for the entire move. Yee-frickin'-haw.

I just heard on bubblevision (again*) that the Chinese market will not be using the breakers tonight. I wonder if they will change their opinion if it's down 20% or 30% and falling? The fact that they said the breakers won't be on makes me think there is big-time planned intervention. If not (I can't see that) then they must be planning some announcement of massive, huge stimulus or some other such nonsense if it starts to drop. Crazy stuff how they just can't allow a free market to function and do price discovery. But, since they blew it up to this level, which is not a free market, why would I expect they would allow it to correct back down to a more reasonable level in a free market fashion? I must be nuts...

* This is supposedly what kicked off the rally earlier today, as somehow not stopping the market from dropping to zero is somehow 'bullish' in this Bizarro World.

Not only are they piling into gold and the Euro (you know, because the Euro is a 'safe haven', right? ), but they are buying muni bonds like crazy. Look at MUB. You know, because the U.S. municipalities are in such good shape. Another 'safe haven'...

Okay, I think I might go sleep until just before the Chinese open, and hopefully nothing big happens. Of course my chart alarms would wake me up if it did...

thanks jim. One more...note the three swings on spy 5 minute shown, where 2.618, 1.618, and 1.618 all land in the blue box. Despite the ugly look of the larger timeframes, they could punch the daylights out of the short side tomorrow if they want.

Originally posted by jimkane

Really nice charts there, rat.

and they're probably not done....