The DJI came up to test last Wednesday's high and in the process rallied beyond the SP futures 30-minute M/A break point. I'm using the DJ futures Wednesday high plus 30 points as my stop, putting my stop at 11,130. Prices are falling fast now so I think this is safe. On the other side, confirmation of the decline will occur at 10,865. This is the futures equivalent of the DJI critical support break.
Although the market has fallen after-hours to critical support this is the 4th attempt to break support since the I1 top 10/10-10/13. The blue line - 1.35% is the critical support break threshold. I increased exposure by buying 2% QID at 13.22.
The dollar index futures rallied beyond their signal threshold last night. I was looking for the dollar ETF UUP to confirm but I guess it will have to wait. The dollar index futures finished their Minute 2 wave and started up into Minute 3. I increased exposure to 2% DX futures.
The Euro finished a clear 5 down and 3 up as in the chart posted at 2:20.
The same count applies to silver as per chart in the 12:45 post.
I1 goes negative Wednesday so a crack is iminent. Bottom is the 26th (likely) or the 27th.
With the Fed pumping trillions into the stockmarket there is no way forward but up. Ralph Elliott never foresaw such blatant manipulation, nor computer automated trading. We need to set aside Elliott Wave until "normality" returns to the market - if it ever does. EW is obsolete. And I am sorry to say, so is I1.
ReplyDeleteIt appears that you are far more adept at reviewing multiple financial instruments simultaneously than the average Joe. May I ask how you have set up your computer(s) and screens? Do you recommend a particular trading platform? Thanks.
ReplyDeleteIBM and AAPL reported better-than-expected quarterly results after the markets closed, but stocks in both companies have sold off. AAPL is down 5 percent, IBM down 3.5 percent. Maybe this is the first real indication of a change of sentiment: Market sells off on GOOD news.
ReplyDeleteWe'll see what Wednesday's POMO brings. :-)
Steve, not sure if you noticed the mini-crash in SPY at 4:15pm? SPY went down over 9% in a few seconds. Since around 6:30 pm I noticed that the stock charts for SPY were updated (by the exchange I guess) and the huge red candle is no more...amazing. What does it all mean, who knows but it can't be good.
ReplyDeleteChina tightens again, they mean business. I keep saying the Chinese have their own agenda, this is economic warfare with the US.
ReplyDeleteSteve
ReplyDeleteCould you post a new I1 chart and tech. chart
Thanks
Jack C
Tom
ReplyDeleteThe more they manipulate the worse the outcome. What will be obsolete will be the illusion that Fed and Treasury can accomplish anything. Greenspan pushed the fiat envelope as far as a sane man would, then passed the electrified baton to Uncle Ben. Ben will be disgraced next year.
Gary
ReplyDeleteIf you want to dis somebody out where I live you just say "They ain't friendly". The conventional wisdom is that this action would cause dollar weakness, but fear of Asian slowdown counteracts that.