Short Term Trading Member Forum

[techcharter]

Chuck, What a mess.

The SPX futures chart is very choppy, the open market less so. INDU has the best signal to count wave (1-2-1-2 to the downside). RUT has sold off the least of the US markets in the past ~2 weeks.


INTC has had several days in a row of opening lower, rallying to positive territory and closing lower than the open. This is incredible weakness and maybe many wave 1-2 degrees forming before a big gap down day.

IBM has started a larger wave 3.


My short term model predictor says things for the next 2-3 days are still to the downside. The predictor will need to be updated this Thursday. Longer term predictors continue to indicate at least a 20% move to the downside is in play. It's reassuring that Hindenberg Omen watchers are seeing the same potential.


On the funnymentals side of analysis. The selloff in oil is not bad because it means less profits for the oil companies. It is bad because of all the derivatives using borrowed money that have to be honored. The only way to honor those contracts at this point is to sell other investments. This has created a domino effect in global equities and currencies. It shouldn't be much longer until margin calls force more selling.