Breach!
Breach!
UPDATE 12:12pm EST: We breached the Jan 28 high on the NDX:
I unhedged a bit early but at least I didn’t get hit starting at the bottom. It seems that we’re going to complete this zigzag and probably bust a bit higher. My line in the sand before hedging again is 1286 on the NDX and 944 on the SPX. If we cross those lines then we might have to start thinking about the blue scenario again – sheeeessh – I wish this market would make up its mind.
Tough trading environment – just look at the past few days’ tape. But now you know why I was warning everyone yesterday night and this morning.
Only the paranoid survive.
UPDATE 12:37pm EST: Okay, we are dropping now but I wanted to warn you about a possible scenario:
Either we are done here and will continue to drop – OR we push down and then rally higher. The wave count would then be a flat – in that I see a 3 up, a 3 down, and if it completes a 5 up. So, if you are delta negative watch the current levels. I also am keeping an eye on the Yen for a possible recovery – it’s weak as heck today, which I warned about early on.
Anyway, I’m not saying that this is what will happen but what could happen. If it does happen we will probably see a reversal to the upside here around 838 – 840 in the ES futures. A move like that would also confirm that breach in the NDX.
UPDATE 1:00pm EST: Okay, watch your gauges now, you evil rats! If we get a reversal this is where it will happen.