This is the opening for my Technical Trader report that I’m now working on and should be posted around 7:30 AM in New York.
Wall Street loves to tell you not to panic when the time comes to sell everything. To them panic means sell. But the truth is, panic is like a deer frozen in the headlights. Just before it gets run over by the oncoming 18 wheeler at speeding along at 80 miles an hour on I-80 as it flees west across New Jersey making its escape from New York.
That’s what this market will do if you freeze now. It will run you over.
We’ve had plenty of warning. The propitious time to act on the oncoming danger has passed. But it’s not ok to panic and freeze now. Because this is likely to get much worse in the coming months. Any rallies are unlikely to get back to where we will be at the high of the day today, whether that’s on the New York open, or sometime later.
Freak Out Now Before It’s Too Late August 29, 2022
Maybe this is a sign that the bottom is in. 😄
Meanwhile a look at the 2 hour bars on the ES 24 hour S&P fugutures says, not quite. In fact, the conventional measured move implication of the top pattern breakdown is around 3900. Hell, we could make that by 10:30 AM. Then we get the face ripping short covering rally.
Or maybe all the shorts covered early last week. If nobody’s short, the market can proceed to go straight to hell. Do not pass go. Do not collect $200.
The usual 1 hour bar look shows a 5 day cycle projection only around 4010, which they hit this morning.
Any rally must clear 4035 and 4041 to prevent additional rapid melting. And even if it does that, it would face layers of resistance every 10-20 points above that. What about a V bottom? First, they’d need to clear 4041 and 4055. Then it’s possible. Otherwise, extending the crash looks like the path of least resistance.
If they do get to 3900, then a V bottom would be more likely to be on the menu.
- Freak Out Now Before It’s Too Late August 29, 2022
- Warnings of August Liquidity Crash Come to Fruition – Here’s What to Do August 28, 2022
- Gold Miners Swing Picks August 26, 2022
- Swing Trade Screens – Hit the Jackpot Last Week, New Shorts This Week August 22, 2022
- Stock Market Uptrend Cracks – Look Out Below August 22, 2022
- Has Rule Number One Been Repealed? August 18, 2022
- “As Good as It Gets” Was Good While It Lasted August 6, 2022
- Treasury Confirms Supply Tsunami We Expected – Will Obliterate Everything August 3, 2022
- Withholding Tax Collections Solid in July, But Here’s Why the Party is Over August 2, 2022
- The Bond Rally That Fooled The Majority And Didn’t Help Dealers July 27, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
