Donald; RE:" gravity "
>Tomorrow morning, we could see another attempt at today's highs, but it should fail and we could see some heavy selling starting tomorrow or Wed...
yeah, as many others noticed - we're near the top of the apparent trading range channel on the SPX/OEX. The SPX.X spiked right up to the top of the apparent trading range channel. It closed right on the fibonacci line on my chart. weird.
...and all the gap-up opens; shooting stars; and gravestone dojis and all that stuff looks toppy, too...
...still, we're very close to that DownTrend Line, and we haven't tested it from this "wave" yet, Donald. It's a strange attractor, man.
A retracement tomorrow could very well just be a bullish pause and fill.
...if we tank I think it will be a hanging man, followed by an upward thrust to test the DownTrend Line.
ie., any downdraft is likely to be fast, and then recover - not heavy as in any DOW 7500 stuff -- note 21-AUG session from the previous "star-step" or 'apparent trading range channel', for example. The SPX.X stochastics don't say we are grossly over-bought: classical Sew HigherHighs and HigherLows on my chart, FWIW.
( OSX.X now, that's another story :-)
That's why I'm not short (the SPX/OEX) here ...just too damn close to the DownTrend Line, 200d EMA, etc. not to be pulled on over there and touch it.
So I'll play devil's advocate here; keep the debate fresh (^_^)
-Steve |
