Bulltard Panic Line

We are getting closer to a bounce and a small retracement as I’m looking at a textbook motive at this point:

The yellow area marks the beautiful motive we have painted since Wednesday – we could turn early or descend to Bulltard Panic Line (BPL) which now has reached 1085. After that I expect a bounce – either a small one (Soylent Orange) or a big one (Soylent Blue) – only Satan knows, and sorry he’s not telling – I’ve asked.

Talking about panic lines – here’s another big picture chart I thought you’d enjoy. Remember the PPT Panic Line (PPTPL) I kept posting about last year? It was the lower boundary of a long term channel which we sliced through since early August – a move I suggested back in August but which admittedly was one of my lower probability scenarios. Well – the gravity machine has been out of service all fall and we indeed reached the upper boundary and then promptly ran into a wall. If the bears don’t hold this line there’s nothing but air above until 11,100 – so you might want to keep your eye on this thing.

NYSE A/D ratio slightly better today at 0.44 – but in my mind expected after those über-bearish readings yesterday. Before you get your bearish hopes up let me rub this in just once more – nothing will happen until we finally breach this channel with confidence – nothing. The bulltards never gave an inch in the past nine month – any retracement was condoned and planned – some might call it bear traps. Whatever it was – it didn’t hurt anyone but retrail trades and über-bears. Once the pain begins for the bulls, that’s when we know a trend change has occured. Until then – well – business as usual.

FYI – I will be quiet the remainder of the day as I have some work to do before I head out to Texas on Sunday. No worries, I plan to be back Monday night.