Gotta be a quickie this morning, sorry. Big Shanky has to go on a field trip with Little Shanky (2) to Fort Benning today. Yes, the timing of this sucks, but the little ones are more important. That brings up a Shanky's Blog tender moment. Remember the little things and keep life in perspective. Appreciate those around you and respect life. In times like these, at least for those of us that have a friggin clue about where we are headed, you can get pretty wrapped up in the gloom and doom. This weekend take a step back and try to find some positives.
Minis are bouncing around and have been as low as 61. The last time we had a drop and pop on the minis like this the markets retraced the lows and then popped. On Opex Friday I'm expecting some recovery as the traders try to level out what they can. There is no telling what will happen today. If we are in the third of a third on the EWT count, it plummets. If we are in the first of the third, a pop is coming soon. There is a pretty strong dovergence on the 60m chart that may indicate a corrective coming soon. That was the case late yesterday as well, but then the indicators whipsawed. The weeklys have not bottomed yet. SPXA50 is at 30. That is really low. NYMO is really low after suffering the whipsaw yesterday as well.
The dump at the close yesterday might have been a sign of more to come. On the other hand investors may take a step back today and regroup. The indicators still say down, but they also say oversold. When they start whipsawing divergences that is not good. Reform bill is hurting financials before the bell. All I can say is stay nimble. If there is a recovery I don't expect much of one with 1102 (200ma) being as high as I think it will get. Possibly 1132 if it really gets running. There is no reason to buy here that I can see.
I would recommend not swinging anything to large over the weekend. Things are really bearish and will remain that way. No good news anywhere and only an acceleration of the bad news should happen. We're still in the down trend and you should play it that way.
Sorry for the short post. I'll update all the charts this weekend. Have a great weekend and GL!