Replies to post #71604 on Zeev's Turnips Patch-No Politics (ZEEV)

[jdaasoc]

MCClellan summation still going 22 pt negative to -326 today. Market breadth sucks.

http://stockcharts.com/charts/indices/McSumNASD.html

[ajtj99]

Zeev, I'm not sure how you can reconcile a drop to 1263 without a bounce with QQQ Max Pain firmly at 25 with a solid floor to boot for this month.

Max Pain failed in Feb. 2002, but we're so close that if we're within $2.00 of 25 on the QQQ in the next 10-days, I think we'll go to 25. History this past year has pretty much born this out.

I don't rule out a drop to 1266-1277 COMP, but I think there will be a 70-80 point bounce for expiration if that happens over the next several days.

After expiration, we can drop like a rock to test the falling support/resistance line off the Sept. 2000 high, currently at around 1240 COMP.

[ajtj99]

In these strong downtrends we go above the 13-EMA for one reason - options expiration Max Pain.

I expect that to hold true again this month.