My apologies for today’s slow update. I am just going to do a brief post now and then do a follow on post tomorrow sometime.
We obviously did accelerate hard down after the fed meeting, but we still do have 2 days left in the week.
I should say that Thursday and Friday are EXTREMELY important in determining the set up for next week. Perhaps I am stating the obvious. But what happens during June 24, 2010 and June 25, 2010 are going to set up the weekly close and either a valid signal or invalid signal for a total panic next week.
My 1987 parallel charts are all systems go. They are currently telling me that we are currently in day 3 of the panic. What happens in the next two days is going to determine if the panic continues or fails.
A huge upside reversal starting tomorrow or Friday is going to maybe ruin the scenario. So again, the next 2 days are key.
I have been closely watching the charts and tape action of all 30 DJIA Stocks and I can tell you that a good majority of them are not looking bullish at all. Instead they look like they are moving to breakdown phase II. Take GE for example, look at the weak bounce and the horrible break down again, and with that tape action we are supposed to get to 1150 sp500 ? NOT.
So goes GE, so goes the market…
The volume over the last 3 days has increased ever so slightly on each day. So we have 3 straight down days.. and 3 days of increasing volume on those down days.. But the volume has not been dramatic, in fact relative to flash crash on May 6, it has been quite modest.
Still, I feel like a quick surge in downside volume could potentially occur assuming we get 2 more key down days into 6/26/2010 (this Friday).
Despite the crash scenario seemingly still working according to plan, there is still a slight risk the market could build support tomorrow and build an ABC up rally.
The nature of the next two days will be the tell tale sign…