I think the message is the same. While the bounce looks good and may keep going, there is too much bullish sentiment out there.

This is quite low and should be something to watch if you are bullish.

http://stockcharts.com/def/servlet/SC.web?c=$cpc,uu[h,a]daclyyay[dc][pc10!d20,2!f][vc60][J9854748...

I agree about IMCL. But if it prints $50, I would be careful. The breakdown from yesterday has been softened.

http://stockcharts.com/def/servlet/SC.pnf?c=imcl,P

Bios are not looking good either JW. This is my setup for that index. BSTE after the bell today should be interesting and IMCL Thursday.


http://stockcharts.com/def/servlet/SC.web?c=$btk,uu[w,a]dhclyyay[db][pf][vc60][ilb14!lb5!lh5,5!li10,...

I must say, some of the banks have repaired some damage. That was another index looking ugly.

http://stockcharts.com/def/servlet/SC.web?c=$bkx,uu[w,a]whclyyay[dd][pf][vc60][ilb14!lb5!lh5,5!li10,...

Ramifications are ugly. Take a look at BRCM as well. If it drops much more, it will have another 15% down to contend with. Another bearish semi setup. And, semi's were the ones leading the NDX.

Starting to look broken. That wedge breakdown is huge!!

It has done 5 waves down from the top and should probably bounce in here somewhere.

Chart I posted yesterday. Should bounce here.

http://stockcharts.com/def/servlet/SC.web?c=qcom,uu[w,a]whclyyay[d20021008,20041208][pf][vc60][ilb14...

Rich, are you still thinking about Qcom? That wedge I posted needs to be watched and respected. If it breaks to the downside, Qcom should be an excellent long term short.

Good luck. I know a lot of people that still work there and there are a lot of excellent products coming as well. I trust charts. If the wedge breaks back up, it would catch my attention.

I can tell you why you do not own Qcom. It is breaking back into the wedge it broke out from. Not bullish.

http://stockcharts.com/def/servlet/SC.web?c=qcom,uu[w,a]whclyyay[d20021008,20041208][pf][vc60][ilb14...

Breakouts in many stocks today.

Test of what?

I think some hard down is coming based on some charts I see, but it may be another few days before that happens.

Still expecting big down JO?

JO, if this prints $56, does P&F have a target for the downside? $56 would be pretty bearish on the 1 and 2 box levels. How do they come up with the $49 target?

http://stockcharts.com/def/servlet/SC.pnf?c=atk,P

Justa, I can see us getting to 1460 here. Then, not sure.

http://stockcharts.com/def/servlet/SC.web?c=$ndx,uu[w,a]ehclyyay[d15][pf][vc60][ilb14!lb5!lh5,5!li10...


http://stockcharts.com/def/servlet/SC.web?c=$ndx,uu[w,a]ehclyyay[d20][pf][vc60][ilb14!lb5!lh5,5!li10...

With all due respect to Norm, some of those triangles make no sense. You cannot count the 1 from arbitrary spots like that. He is a great technician, but I do not agree with some of the charts.

Have you seen how many QQQ puts there are for November already. I just don't see a prolonged fall here.

There is the 380 I was looking for.

http://stockcharts.com/def/servlet/SC.pnf?chart=$SOX,PLTADANRBO[PA][D20041014][F1!3!!!2!20]&pref....

Looks like 350 could come into play.

http://stockcharts.com/def/servlet/SC.web?c=$sox,uu[w,a]dhclyyay[d20040404,20041220][pf][vc60][ilb14....

Dow should dump at least another 50 points. That would be the bullish read.

http://stockcharts.com/def/servlet/SC.web?c=$indu,uu[w,a]dhclyyay[db][pf][vc60][ilb14!lb5!lh5,5!li10....

http://stockcharts.com/webcgi/Pnf.asp?S=$INDU

Why? That thing could go this morning.

380 and Sox would have some issues. So far it is fine.

http://stockcharts.com/def/servlet/SC.pnf?c=$SOX,P

The one thing to watch today.

http://stockcharts.com/def/servlet/SC.web?c=$sox,uu[w,a]dhclyyay[d20040404,20041220][pf][vc60][ilb14...

Too many QQQ puts. Check out the possible Dow read here. Best case is it has another 100 or so points to the down side.

http://stockcharts.com/def/servlet/SC.web?c=$indu,uu[w,a]dhclyyay[db][pf][vc60][ilb14!lb5!lh5,5!li10...

Simple. Just play the wedge.

http://stockcharts.com/def/servlet/SC.web?c=$sox,uu[w,a]dhclyyay[d20040404,20041220][pf][vc60][ilb14...

Impulsive move off of the top today on the Dow. Early yet, but interesting.

You should hope INTC says something positive, because if this breaks, things will get very ugly.

http://stockcharts.com/def/servlet/SC.web?c=$sox,uu[w,a]dhclyyay[d20040404,20041220][pf][vc60][ilb14...

That would work nicely with a gap fill on the NDX. Then a possible ramp to the top of the Sox wedge.

I am thinking we are not done with down yet. I think that gap gets filled.

http://stockcharts.com/def/servlet/SC.web?c=$ndx,uu[w,a]ehclyyay[d20][pf][vc60][ilb14!lb5!lh5,5!li10...

Nice huge gap and crap on BRCM. It could just be filling the gap, but some volume sure came in and sold it down.

Good. I will follow it too. Did not have that on my charts as I was watching the shorter time frames. I guess this would mean one more marginal high before a dump. Always fun. As JO mentioned, INTC will be everything tomorrow. I will take a look at their chart.

http://stockcharts.com/def/servlet/SC.web?c=$sox,uu[w,a]dhclyyay[d20040404,20041220][pf][vc60][ilb14...

Justa, this is all I am watching. Either the Sox did a nice correction off the highs that ended Friday and we rally back up, or this read is wrong and we get some steep selling.

http://stockcharts.com/def/servlet/SC.web?c=$sox,uu[w,a]ehclyyay[d20][pf][vc60][ilb14!lb5!lh5,5!li10...

Just remember, October is notorious for big dumps. Seems unlikely given the huge buildup in puts, but anything is possible here.

I am waiting to see how the futures repond to the debates. Markets need to go up right out of the box on Monday or my short term bullish read could be in jeapordy.

Potential bullish short term scenario. The Sox could have completed a three wave off the most recent top. Would portend more up right out of the box on Monday.

http://stockcharts.com/def/servlet/SC.web?c=$sox,uu[w,a]ehclyyay[d20][pf][vc60][ilb14!lb5!lh5,5!li10...

With the put call ratio rising and the huge amount of puts on the QQQ's, I think this scenario makes sense.

http://www.cboe.com/data/IntraDayVol.aspx

Yes, I like that scenario. I see the sox in a potential abc here, completing the c. That would mean another trip up, but does not mean the NDX or Dow needs to make new highs.


http://stockcharts.com/def/servlet/SC.web?c=$sox,uu[w,a]ehclyyay[d20][pf][vc60][ilb14!lb5!lh5,5!li10...

This is getting quite bullish.

http://www.cboe.com/data/IntraDayVol.aspx

Justa, good call of late. I still think we have a shot at some up before the really good down. Are any of your indicators resetting to the point of showing a potential rally coming?

Man, no way I would be short the QQQ's with that much open interest on puts. No way, no how.

Justa, just as we need to keep in the back of our heads the ultra bearish setups, we also need to remember the ultra bullish.

http://stockcharts.com/def/servlet/SC.web?c=$ndx,uu[w,a]ehclyyay[d20][pf][vc60][ilb14!lb5!lh5,5!li10...

Zeev is bearish here? Haven't heard his latest map in quite a while.

The sheer number of QQQ puts for October tells me we are not going to see $36 or below again for at least until after options expiration.

MC, I am just presenting both potential sides. I think it is important that the bearish case stays in the back of everyone's minds. I am not saying it will happen, but ignoring potential setups is just not wise.