Short Term Trading Member Forum

[techcharter]

Carnage Today, Bottoming Tomorrow.

The e-wave pattern from Tuesday's high looks very motive. Today was definetly a wave 3. The last 2 hours of trading began the consolidation, probably a wave 4 to be confirmed by a rally at Friday's opening. The rest of Friday should be another test of today's lows, but fails to hold the break lower. Monday looks like it will correct this week's selloff 30%, 33%, 38%, or 40%. As the market get closer to huge gaps down, these pullbacks should be on the shallow side instead of the 50%, 60%, 62%, 66% variety.

The ABX mortgage index headed sharply lower. This has been a fairly good intermediate trend indicator.


http://www.marketwatch.com/tools/quotes/intchart.asp?submitted=true&intflavor=advanced&symb=spy&origurl=%2Ftools%2Fquotes%2Fintchart.asp&time=3&freq=9&startdate=&enddate=&hiddenTrue=&comp=Enter+Symbol%28s%29%3A&compidx=aaaaa%7E0&compind=aaaaa%7E0&uf=7168&ma=1&maval=50&lf=1&lf2=4&lf3=0&type=2&size=3&optstyle=1013