and now some real selling

Elevator down.

Reminders for future reference:

– use Vol. Oscillator low to determine peaks when there is a discrepancy between oscillator and price lows.
– when you have an oscillator sell signal in play, and then a token new high, look for a kiss goodbye of the rising trendline that it broke

And so where do we bounce?

Maybe here
But ideally a bit lower – 1930 or 1908

Watch for stabilisation just below or near to the grey lower boundary of the channel

Chart of S&P500 for 2 October 2014

 

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