Short Term Trading Member Forum

[arjunah]

SPX: On the day of the October 10 low of 839 I described two near term scenarios. The first was a powerful snapback rally that would take the market up to the 1100-1200 area. That was my preferred scenario. Although I was expecting it quickly, I did not foresee the SPX recovering nearly 200 points in two days up to 1044.

But the weakness since then has made me more inclined toward the second scenario: continued battering into the 9 month low.

I have us in the area of the third 10W bottom from the March low that could take out the October 10 low before election day. Then, with everyone's fears relieved or realized, a rally in November out of the 10W low, followed by another round of selling with lower lows into December and the 9M low. God bless us, every one.