Susan, I saw that chart on your other thread. It was pretty amazing.
One thing I did notice yesterday after perusing the charts was the breakdown of the rising wedges on all the charts shorter than the daily. The BTK closed below the 20-hour and 13-hour EMA, which had held it up all day long yesterday. When that happened, I knew we were going down in earnest, as the BTK has been a pretty fair canary the past couple of months. Furthermore, a close on the LOD on the NDX and COMP was not a good omen either. Indicators on all charts turned down from mid-level, which is very bearish.
The other thing I noticed today was the triangle on the 60-minute chart. It formed connecting the NDX 1250 and 1196 highs and the first two candles on the 7th (hourly chart).
That thing broke at around 11:30AM this AM, and that's when we got the dump. Once I saw that, it was pretty clear we were on the way to test the Friday lows, as there was nothing in between.
The Friday lows were not hit in a way we normally hit an intermediary low. We usually grind down to them. Furthermore, if we did hit a solid low, we usually run away from it and test it within 3-4 days. That made a drop today or tomorrow fairly predictable even if you thought the low would hold.
Anyway, very wordy, but I do admire your charts and commentary, Susan. You are one of the best traders out there.
I was holding June QQQ and BTK puts this AM purchased yesterday afternoon. I closed them 5-minutes prior to close today. I'll close my July's on a drop to meet or breach 1088 NDX (breach is what I'm looking for, and 1066-1070 is my target for the low, with 1063.27 a possibility also). |
