The volume is big on downside and light on the upside. The reason being BEARS have given up and surrendered to the FED printing. But, once you get a downside follow through then BULLS would be scrambling to the exits
If the decline were to happen... it will be swift and fast like July-early August (Just more volume & volatility) You can get to 200 DMA in the next 3-8 trading days.
What is happening now is historic and as per EW theory we will end up 80%-90% lower in the next 12-24 months.
This would be just Wave-1 of the Wave-C (If the Wave-B from 2009 lows is complete)
The 20 DMA held today, but will give in tomorrow. The real selling will start once it slices the 50 DMA like butter :) What a surprise the the volume shot up on a down day...LOL
All the upside gaps of the August bogus low volume rally will be filled on the way down.
Once 1985 is broken then, 1972 and then 1955. I think finally a date with the 200 DMA is imminent
You think 1900 will hold this time around? Nopes... Unless the 200 DMA gets there first.
The technical divergences are in full swing, but this market and X in specific have been ignoring every thing and just keep soaring higher. Once it breaks the 20 DMA ($38) on volume this is heading down to 50 DMA ($33) in a hurry! Once, it gets close enough to the gap then it acts as a magnet :)
$ might be still completing it's Wave-3 move. Mean while, in not so distant future Stocks, Bonds and Gold will all move lower... This is going be a repeat of 1929 situation and the markets will drop 70-85% by 2016. The question is not IF, but WHEN (What will be the catalyst that will set the spark)
"The fed has infinite money"
No it does not.... They can print as much as they want until $ is the reserve currency. When that changes then what? Their real capital is 52 BILLION, but their balance sheet is 4.2 TRILLION!!!
Zero resistance cuz NO SELLERS!!!
Massive Support cuz of FREE MONEY!!!
No TA is required to analyze markets that are fueled by FED printing
Unfortunately, there is still a lot of retail in the game, but nowhere close to the volume required for a mass exodus that WS wants to pull off.
Very true... unless one or two bad apples break the rules and SELL!!! The whole house of cards will come crashing down! Only a sick market will rejoice dismal pay-roll numbers
Would be nice to a higher high next week and then roll over for good... About time! Don't see a real upside catalyst in Sep. - Mid Oct., but plenty of headline risk in the pipeline. Would we get a 1987 type scenario? The stars sure have lined up, but the central bankers will do everything in their power to stop even a 4%-5% decline!
Market will just shrug it off... Why?
More sanctions = Bad for EU economy = More QE = New ATH
This is one twisted market!
"where taxpayer money is used to enrich Wall Street"
Well... I would extend that beyond wall street. there has been a methodical transfer of wealth from MC to the top 1% over the past several decades. But, what makes post 2009 different is that it has been blatant and very public.
Currently we're in a A-B-C pattern since almost 2000 and are inching up against the top of B and the C wave that follows will be much larger, nastier and faster that the wave A we saw in 2008-2009.
C wave might do 1-2-3-4-5 decline.
We will know when Wave-1 decline of this C wave begins I (It could start in Sep/Oct.) and you can make some good $$$ on the downside, then there should be a Wave-2 that might be a 50%-78.6% retrace of Wave-1 (Another a-b-c) decline thus making a lower high (aggressive trader can play this one as well) but the real pay-off would be to catch the Wave-3 of this decline and ride it down.
We can have more specific targets once the Wave-1 unfolds for sure (A sure way to tell is the breach on the Aug-7 support trend line)
That is the issue... Nobody is funding anything. Just creating money out of thin air. All they need is a printing press, plates, ink & paper :)