Menu Close

Market Down the Tubes Looks for Terminal Way Out

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Hourly oscillators are on the buy side on the ES S&P 500 fuguetures this morning. It looks like only a 3 day cycle low. It’s too early for the 5 day, so I’m guessing there’s one more down wave accompanied by a positive divergence before this sell wave ends.

The key levels to watch this morning are 3800-05, coming into the NY open. If they clear that, the next minor resistance level would be 3820. Breaking that would create a minor reversal breakout that would measure to 3855.

Seems unlikely, but it’s not my decision. Now, on the downside, keep an eye on 3765-75. That’s the major sport level that needs to hold. If it breaks, Happy Meltdown.

That also seems unlikely. However, whatever the market gives, I’ll take it, thank you very much.

zxf9e

An uptick on Friday would coincide with a letup in the year end tax selling that most likely is all but done. Most wealth is, after all, managed by professionals, and most likely they want to take the day off tomorrow. So, being the prudent planners that they are, I suspect that they’re done with their tax sales. Their ski reservations are made and many of them are already on the slopes.

Heh heh.

In fact, in my daily swing trade screens, I’ve seen lots of evidence of nibbling for bargains this week.

So, no, I don’t expect a massive collapse today and tomorrow, and yes, I think we see a bit of rebound to start the new year.

A bit. As for the bigger picture, I’ll post my outlook to begin the new year later on this coming long weekend.

Be there!

For moron the markets, see:

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.

Join the conversation and have a little fun at Capitalstool.com. 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.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading