Okay, Houston, we've had a problem here
Jack Swigert, Apollo 13, 1970
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After repeated spikes at the 2940 all time high with late day selling the market finally finds the problem and sells hard with the opposite effect of buying the dip towards end of day.
First downside target acheived at the important 2870 level corresponding with the early September lows, and IF the market has found a low we have the possibility of a T under construction that could certainly see a re-bound.
BUT some heavy downward forces are now in place with a series of strong declining angles that will most likely be strong resistance to advances as those participants who did not sell at the recent highs decide to sell into any recovery and ask questions later.
IF the market continues lower, we will look for stabilisation in oscillators and price, and recovery above declining angles prior to the next advance, moving the provisional center of the next large T structure forward until a low is firmly in place.
Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.