Market Update

*updated @ 3:45 pm to clarify a very important point in the closing paragraphs right after the Jesse Livermore quote…

 

I told many people over the weekend that how the market opened Sunday night/Monday morning would tell us much about the pros plans.  Remember, they can e-a-s-i-l-y stop this at any time by simply buying the overnight futures.  The best place to kick off any premeditated move for the pros is on the weekly open on Sunday night.  All the best moves typically happen there, so keep that in mind for the future.  FYI:  another favorite spot to play pro games is after a holiday market closure.

I just want to say this one more time and then I will let it rest.  They are doing all of this ON PURPOSE!  This market has been FORCED lower with the Fake News being used as a bludgeon for maximum effect.  Opening gaps almost always indicate the pro’s intent.  The market doesn’t simply move…but rather it IS MOVED.  Never forget that.

So, what exactly did they accomplish with last night’s lock limit down antics?  It is simple.  They clearly wanted the stops underneath Friday’s lows.  So, now we just need to watch the previous day’s low as our new line in the sand for reversal purposes.  Bulls and bears alike should be very interested in that line.  Many bears now have some serious profits rolled-up on paper.  Now, ask yourself what happens to those profits if they suddenly decide to close the markets in an ongoing pattern of forced over-reaction (all intentional) and incessant fear-mongering through the Fake News.  Hmmm.

Friday is Quadruple Witching across all of the options markets.  That is the day when ALL of the March contracts expire.  Unlike stock holders, who can simply elect to weather the storm and wait for the inevitable rebound that will take hold after the pros have accomplished their objectives for this all-out assault on the American economy, options players will see finality this week–one way or the other.  So remember, today’s predator is tomorrow’s prey in the market.  Think carefully about not getting too greedy folks.  For bears, it really doesn’t get much better than this–but the pros ALWAYS eventually turn on the bears who linger too long–and when it happens you likely won’t be able to get your buy-to-cover order filled at your stops once the market flips.  That’s they way the pros always roll.

 

 

The screen capture above shows the S&P 500 Futures, as I type…

The short-term timeframe is in play and that is what it is all about in this current market.  The arrows on the screen capture above from: https://stopsandtargets.com/members/futures/es.html show the current short-term range, which is between 2380 and 2697.25. That short-term range changes every day and it equals the previous trading day’s low and high.  Simple.  Are you with me so far?

Those are the only two numbers that matter in the current BEAR 10 configuration.  Period!

Why, you might ask, do I say that?  …The definition of a bearish trend is: a sequence of lower highs and lower lows.  The current bearish trend cannot be reversed until we eventually see a close that crosses ABOVE the previous lower high.

Okay, pause and let that previous paragraph sink in.

That takes care of the importance of the range high–so why do I say the range low is also important?  …because the counter-trend speculator stops are congregated just underneath.  You see, the very disciplined knife catchers (I know, that’s an oxymoron) will continually take probing shots on the long side hoping to find a bottom and they will almost ALL set their initial protective stops underneath the recent low, to limit risk.  The pros KNOW that and so will continue to dip down and grab those all-too-easy sell orders (when stops are triggered) until the supply dries up.

Eventually, the bottom is going to come after a counter-trend buy signal is generated when the previous bar’s stops have been taken and then price rallies back up inside of the range.  The pros will decide when they are ready to switch sides–but they likely won’t do that until the buying dries up near the range bottom.

It’s okay for bears to take partials at the bottom targets (buyers) and although eventually some bulls will be rewarded when the market eventually rallies–the odds are very low on these counter-trend entires until/unless the buying volume dries up.  Ask all of the dejected knife catchers who bought in Friday and then set their stops under the Friday low.  See how that works”

Remember, for the pro’s trades to work they MUST entice large numbers of traders to take the opposite side from theirs.  When the bottom comes it will be at maximum pessimism in the Fake News cycle.  Watch for it… and watch those short-term trading range numbers very carefully in the coming days.

Bulls always want to catch the bottom on these things and it FEELS good to try to enter on a push down–but the smarter way to trade is to always run with the trend and to leave the counter-trend stuff alone–especially in fully bearish (and fully bullish) markets.  For best odds, let the pros FIRST set the direction and THEN try to get the momentum winds at your back on your own entires.

 

The pros intentionally pushed this over the edge way up higher to flip all trends down–and now I am just starting to sense the inevitable manufactured fear crescendoing.  Careful here, my bear friends… but also be careful my bullish knife-catching friends.

The first eighth and the last eighth are ALWAYS the most expensive!

Those of you old-timers that have been around since the pre-decimialization of the markets know exactly what I mean with that last Jesse Livermore quote.

The most expensive first eighth for bulls is a counter-trend long entry below the range bottom in a trending bear market–and the most expensive first eighth for bears is on a counter-trend short entry above the range top in a trending bull market.

The smarter way, in my opinion, to establish new entries is as follows:  The best long entry for bulls is very often at a breakout ABOVE the range top in a trending reversal FROM a bear market to a new bull market–and the best initial short entry for bears comes on a breakout BELOW the range bottom in a trending reversal FROM a bull market to a new bear market.

Don’t believe me?  Check out the Stops and Targets trend start net change columns on the summary tab screen capture above. Bears have racked up massive short trade gains of -22%, -25%, and -17% respectively for the last long-term, intermediate, and short-term signals!

Remember, the short-term range changes after the close every day, so those numbers will be different tomorrow–but the exact same advice is ALWAYS applicable.  Bulls and bears should BOTH watch that short-term stop/reverse line very carefully during this BEAR 10 market configuration!

Caveat emptor as we navigate Quadruple Witching arriving at week’s end.

…my .02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Update

click image to enlarge

 

Right on cue…the S&P 500 Futures Options bounced off the trend line support I pointed out in yesterdays’s post (see blue shaded highlight on monthly bar chart above) and the overnight futures (futures symbol: ES) are up +126 as I type (at 9:20 am).  That translates into +1,110 points on the Dow Jones Futures (futures symbol: YM).  The futures hit their upper trading limit and were halted prior to the cash market open.

 

 

On virtually every tracked symbol, the short-term timeframe is now in play.  I have posted a screenshot of the S&P Futures above.  That is the place to watch today to see how price reacts at resistance.  Bears will likely try to reestablish short trades within the shaded red zones, where the risk reward ratio is 1:3, but if price jumps above that resistance then the next target higher would be the top of the range at 2762

 

 

As I have been saying–the pressure changes from being on the bulls to being on bears if and only if the short-term stop/reverse line gets crossed to the upside.  When that eventually happens, the upside could be spectacular.

See the screenshot above for the summary tab for the S&P 500 futures.  The current stop/reverse line is at 2762, which is the current short-term range top in a trending short-term bear market.

This could be a very interesting day.  Watch that red-shaded bearish ideal entry zone between 2683.50 and 2620 just after the open here.  Bears are going to hop in at the first sign of a pullback.  What remains to be seen is whether they get another easy trip down–or if they are merely being baited in here, only to be used as guaranteed buyers if the futures get another push out of the resistance zone later today.

…my .02

 

 

 

 

Market Update

 

Today is ‘Options Rollover Day’ and Futures Options have now rolled over from the March 2020 to June 2020 contract with a difference of -11.25 points from ESH20 (March) to ESM20 (June).

All previous chart numbers have been adjusted to reflect the new continuous contract pricing—so, for example, the Long Term stop/reverse line from the expiring March contract at 3181.00 now becomes 3169.75, and so forth.

 

<rant/>

In my last two posts I laid out the things that had to happen for a reversal to occur–and frankly, the stars could not possibly have been aligned better than they were for at least a snap-back rally.  If we had a democrat president in office, I guarantee you we would be rallying right now–but I will repeat what I have been saying since this thing topped and started the engineered decline…  This market is intentionally being FORCED lower using the futures–and if average people want to rightfully direct their rage at what is going on then look no further than the Fake News Media and their owners.

Like most, I watched President Trump last night–and I personally thought it was a bit of a disaster as far as the tone, delivery, and in the complete failure to dispel the panic that is being fomented.  The Obama administration either actively encouraged (most likely)–or at the very least looked away when their allies jacked up the overnight futures markets for eight straight years from their offshore accounts.  President Trump doesn’t get the same favors returned, as he is constantly being micro analyzed by his persecutors and so must do absolutely everything by the book.  It is clear as day to me that this engineered crash is and was premeditated.

</rant>

 

Okay, with all that said my giddy bear friends and my now terrified bull friends have one common thought in their minds…’when and where might this thing bounce?’.  So, let’s take a look at the S&P 500 Futures Option charts (the tail that wags the dog) and see where things currently stand…

 

(click image to enlarge)

 

My analysis always starts from the very long term perspective and then progressively zooms in closer.  The idea is to be able to see the Big Picture first.  The monthly bar chart above, in essence, shows the entire forest.  The next series of charts will then zoom in progressively until we see the ‘single tree‘ (a daily bar) and where it lies within the forest in the grand scheme of things.

In the monthly bar chart above each candlestick bar represents one month, or on average about 21 trading days.  The time scale at the bottom shows that this chart presents the market since the initial start of the futures contract in the late 1990’s.

For someone who just wants the Cliff’s note version… a persistent bear market existed from March of 2000 until the March 2009 bottom.  That bear market was indicated by the descending red trendline drawn off a series of lower highs.  Once the market bottomed and then reversed we saw an initial rally that eventually broke through that red trendline.  The day that trendline was broken to the upside was when the secular bear market officially ended.

In 2009, the place where the very first reversal signal occurred at 652.50.  At that point we saw a long-term (monthly bar) buy signal generated at Stops and Targets when we got the first break above the series of monthly lower highs.  After that turn the market started to create higher highs and higher lows on the monthly bars, which was a MAJOR paradigm shift.

Now, I direct your eyes to the parallel opposite of that 2009 signal to what happened in February at 3169.75.  That was the first break of the last higher low on the monthly bars and is where Stops and Targets generated a long-term (monthly bar) SELL on 25-February (see the summary tab on the screenshot for Stops and Targets at the top of this page).  At that point, the market began a pullback that no one could have possibly known at the time (except the perpetrators, of course) would be as severe as this has been. This month marks the first lower high and lower low on a monthly bar in some time (last one was in August of 2019).

The next thing I want to direct your eyes to is the dark green trendline support on the monthly bar chart above.  That green line, is drawn off the last two higher 12-bar monthly pivot lows in the secular bull market.  That trendline support currently sits at 2543

The blue trendline shown on the chart above (added in my post revision at 11:52 am) is the polar opposite of the red line (drawn off lower highs) where the bear ended.  If we can’t get a hard bounce near above or near the blue trendline at 2420, then the viability of the entire bull market that has been underway since 2009 would come into question.  In other words, that is about as far as the pros can technically go on a pullback before they actually break the bullish paradigm.

Trendline support is where they are going this morning, so let’s see what happens after they poke at these trend lines for a bit.  This is maximum pressure being exerted on the bulls right here.

Bottom line is that we are still in a secular bull market above that blue line–but a significant break below would be ominous–and if that were to happen, the next obvious target lower would be the stops under 2319.50.

 

 

 

Next we move in a little closer to the forest to examine the weekly bar chart.  Each candlestick in the chart above represents one week, or 5 trading days.  This chart has been amazing for perfectly timing the stop sweep/reversal entries since 2009!  There have now been 11 occasions since 2009 where the pros have driven the market (intentionally) below the last higher 4-bar weekly pivot low (see the shaded circles on the chart above to see the last 5 occurrences).  In every prior case, the market was able to sharply reverse once those stops under the prior pivots had been exploited.  Sometimes the entire robbery took just a single week to perpetrate, and other times the maneuver took multiple weeks.  In the end, the result has always been the same since 2009.  Once the stops are raided and selling is exhausted, the reversal begins.  Recognition of this maneuver has been the single best method available to know when to buy the dip.

I have said here for many years now—>when the time eventually comes that the market is unable to recover back above the last higher weekly pivot low (as indicated on my chart above) then we will know right then and there that the amazing Weekly Bar Paradigm has ended.

The line that ultimately matters is up at 2846.50, that was where the first break of the last higher pivot low began the ‘stop sweep’ phase of the current robbery in process.  What remains to be seen is how the ‘reversal’ unfolds, IF it unfolds.  This is how the pros have been doing it thus far–so we tend to expect a continuation of the trend until/unless we see a break in the pattern.

Again, we see the same initial support trendline at the 2543 area that was shown on the monthly bar chart.  The next lower trendline from the weekly bars is at 2479 and then the outer boundary is at the 2420 area.

 

 

 

In the last chart we now see the individual trees in the forest… each bar on the chart above represents one trading day.

Note that price has just reached that very long-term trendline support at 2543 from the prior two charts.  The next minor support trendline lower is at 2479.  The next line lower (secular bull market outer boundary) is at 2420

If none of those trend lines stop this then the stops under 2319.50 would be next.

However, remember the lesson of not being able to see the forest for the trees… we are testing that very long-term trendline support today and that is a pretty big deal.

The problem with this kind of decline from a bullish speculator’s perspective is that so long as there are large numbers of willing buyers trying to catch a knife–it just feeds the bears with ready buyers who need someone on the other side of their trade to sell short.  So, in other words, the market can’t stop falling until speculators eventually give up hope and stop trying to catch the knife.  Crazy, but that’s the way it works (unless someone decides to sit on the futures buy button somewhere down in the Caribbean offshore outlets).

The buyers will definitely come in when price is able to cross back above the short-term Stop/Reverse line–so that is the number to watch for both bears and bulls.  As I type, that line is at 2858.25

…my .02

 

 

Update at 10:17 am!!!

 

*An excellent trader friend of mine just pointed out that the BLUE trendline is actually the corollary of the red trendline that defines the outer edge of the technical bull market.  To officially break the bull market that has been in place since the 2009 low would require a breakout below that line, which is currently located at about the 2420 area.  He is absolutely correct, and so I have updated my monthly chart above to add that very long-term trendline and also revised my earlier post to include it.

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Weekly Bar Paradigm Update

 

Last night I posted about huge numbers of Bottom Spotters that were generated yesterday at the close.  There were 921 NEW Bottom Spotters generated along with unanimous Bottom Spotters across the major Indices (Dow Industrials, S&P 500, NASDAQ Composite, Russell 3000) at major Futures Options (ES, YM, NQ).  In my opinion–what happened yesterday is the Holy Grail of signals generated by www.stopsandtargets.com.  It can take YEARS for the stars to align in this way.  This is a very rare and very special occurrence.

First things first, of course, and that means that we actually must receive CONFIRMATION for those signals to become official.  The confirmation for each individual stock and for all of the indices and futures with active Bottom Spotter alerts is a closing price that crosses above the short-term Stop/Reverse line for each.

The other side of the possibilities from here would be a massive Bottom Spotter failure.  That does happen from time to time, so we have to be diligent as this unfolds.  A failure is defined as a a price movement down that dips below the Bottom Spotter alert price (yesterday’s low for all of those new alerts).  If we get a failure to launch here, then everything I am saying about this bounce setup goes right out the window instantly if/when those Bottom Spotter hard deck prices get broken.

To be very clear–a failure/invalidation of a Bottom Spotter signal can be a very bad thing for a speculator trying to time a major reversal if that person does not exit at the very first sign of signal failure! A Bottom Spotter failure is a trend continuation SELL signal and can be accompanied by massive selling as bull protective sell stops are triggered along with new bear entires selling short on a momentum breakout to create enormous selling volume.  Hopefully, I have been very clear about that–if this stop sweep/reversal setup works out then we have a potentially great buying opportunity–but if this setup fails, you really don’t want to hesitate and then run to potentially huge losses on any new speculative position if the bullish buy the dip paradigm ends and a potential new secular bear market begins.  Let that sentence sink in fully!  Okay, rant off.

 

Let’s take a closer look at where we currently stand on the Weekly Bar Paradigm…

 

(click image to enlarge)

The chart above shows weekly bars for the S&P 500 Futures contract.  Each candlestick bar represents one week (5 trading days).

What we are extremely interested to watch on the weekly bars is the formation of 4-bar weekly pivots.  What that means is a low or high price reversal that is at the extreme high or low relative to the preceding and proceeding 4 weeks on either side.  I have marked those pivots with dark green dots at the pivot lows and red dots at the pivot highs.  Don’t be confused by the red and bright green dots that are centered on the Stop/Reverse line.  Those are weekly TREND BUY and SELL signals, as reflected at Stops and Targets. Note: The last weekly trend sell (see intermediate tab at Stops and Targets) was at 3328 on February 24th.

What we are interested to look at in this post in particular are the 4-bar pivot lows (marked by the dark green dots).  In a trending secular bull market we expect to see a pattern of higher highs and higher lows as the market naturally works higher.  Usually, as the market marches higher the previous higher low is not tested.  As a result, professional investors use those pivot lows to trail profit stops for long-term positions.  That is important to understand–so take a very close look at the chart above to see how that pattern works.

It doesn’t happen very often (just 11 times now since the 2009 market low), but every now and again the pros will take the market down intentionally with massive counter-trend short trades.  Their target has consistently been those huge troves of professional stops resting underneath the weekly bar pivot lows.  The reason the pros go there is because they KNOW where those guaranteed sellers are.  The pros need to know that when it comes time to cover their short trades (by buying to cover) that there will be a sufficient number of SELLERS at a particular price point.  The pros need a large volume of sellers because they not only have to buy to cover their own positions without driving the market against their positions–but they also need a place to BUY at bargain prices to reestablish their own positions ahead of the intended reversal.  Once they are covered and ready to go, the pros will buy furiously and pull their usual dirty tricks like pulling bids on the way up and freezing out bears with opening gaps, etc.  For anyone who has been on the wrong side of a reversal trap–you know exactly what I am talking about.  The pros WANT to induce panic at their exits and reentries, that’s how they make this work.  Wash, rinse, repeat.  The game always stays the same.  Pointing out those levels is how Stops and Targets works.  Does that all make sense?  If not, please reread the above paragraph because that is the nugget of wisdom that is essential to prosper in the markets ever since Futures Options started to be used as the tail that wags the dog in the late 1990’s.

So, with all of that said–let’s take a close look at the current setup on the weekly chart above…

I have circled the last higher 4-bar pivot low at 2857.75 and as you will recall from previous posts–I pointed that out as a VERY IMPORTANT NUMBER.  Now do you see why?

From the top, the pros intentionally took this market down.  Their premeditated targets lower were the last three 4-bar pivot lows at 2857.75, 2780.25, and 2737.25 respectively.  Why, you might ask?  …because that is where they KNEW they would find sellers, because that is where the trailing stops were resting.  Those are known pressure points.  All the pros had to do was puncture each one and just like shaking a piggy bank–the stocks came tumbling out as investors either exited on disciplined trades or panicked as the pain became too great.  The Fake Media was all too happy to supply the fear mongering necessary to whip the unaware masses into a frenzy.  Come on folks, the Corona Virus is just a strain of the common flu.  We’ve seen this many times before.  Anybody remember SARS, Bird Flu, and all the other previous scare tactics from the propagandists?  Go ahead think back to previous market scares and remember all the ridiculous stuff the media used to position people mentally for the pros to rob.  It is ALL coordinated.  Every last bit of it.  I have been ranting against the ‘news and noise’ here for decades.  They are vile creatures.  No different than Pravda from the USSR days–except they are owned and controlled by the pros with the sole purpose of making money.

Do you see it now?  The whole thing is just a choreographed play.  Once you understand how these people operate, then you can start to see the strings they pull to manipulate the market.  It is about the stops, and always has been.  Once you understand how they think then things become much clearer.  Hopefully I have enlightened someone with this post.

The older I get the more I realize that what matters most in life is loving other people.  Your family, your friends–that is the key.  The media propagandists WANT to toy with your emotions–because they are trying to maneuver you into a kill zone in the market.  If you don’t realize that, then it is easy to become miserable.  Laugh at those evil folks and enjoy the show from here on, is my advice.  The markets present great opportunities to make money–but the pros are always going to do their level best to maneuver folks to the OTHER SIDE of their trades.  So, watch for the signs of manipulation and when it starts then ask yourself what are they up to and look to see where are they going?  They have NO desire to kill their golden calf, so when they have finished shaking the trees and stuffing their pockets with bargains then the market will reverse.  It is simply too easy for them to stop any crash by just buying the overnight futures.  That’s all they have to do and that is why I KNOW they were taking this market down intentionally.  Watch what happens when they all get on the other side!

Okay, so back to the chart setup above…

Look at the parallel channel marked by the dashed green lines.  Do you see where buyers came in there to set the lows yesterday?  That is the hard deck for this setup.  If, for some reason, this Bottom Spotter setup is invalidated then we can already see the next targets lower.  Those are the trend lines drawn off previous higher 4-bar weekly pivot lows.  Pretty cool, right?

You know what to do.  Once the pros decide the time is right, this ‘panic’ will reverse with a vengeance.  If price goes below then Bottom Spotter hard deck, then this particular setup is finished and we’ll start looking for the next one–otherwise, if we get a buying frenzy and short-term Stop/Reverse lines are eventually crossed to the upside then suddenly the Fake News will start singing a brand new tune.  Watch for it, it’s kinda entertaining once you know what to look for.

To complete engineered stop sweep/reversal number 11 in the Weekly Bar Paradigm, we would need to see prices eventually recover and then hold ABOVE that line.  If it does, then this was just another orchestrated event.  If not, then we’ll have something new to discuss if/when the amazing paradigm that has been in place since 2009 finally ends.

🙂

…my .02

 

 

PS:  Feel free to circulate links to this post to others that you think might be helped.  You all have my permission to do so.

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Bottom Spotters!

 

Whoa!

At the close today we have:

  • 921 NEW Bottom Spotter Alerts!
  • Unanimous Major Index and Futures Options Bottom Spotter Alerts!

When it comes to Spotter Alert signals, it just doesn’t get any stronger than this from Stops and Targets!

 

This is exactly what I have been waiting for…

The ideal setup to continue riding the Weekly Bar Paradigm in place since 2009 has the following characteristics:

  1. A powerful countertrend pullback (check)
  2. All stop levels taken under pivots as far down as possible before penetrating support void (check)
  3. Major support target attained (monthly bar channel bottom) (check)
  4. Massive numbers of Bottom Spotters generated in Russell 3000 components (921 today–so definitely check)
  5. Unanimous Major Index and Futures Options Bottom Spotters (check)
  6. CONFIRMATION of Bottom Spotters on short-term trend change (not yet)
  7. Bottom Spotter hard deck holds on pullback test (pending)
  8. New successive daily bar higher highs and higher lows (not yet)
  9. Next major resistance target attained (intermediate stop/reverse line) (not yet)

 

So, now the caveat straight from the User Guide at:  https://stopsandtargets.com/help/#collapseThirtythree …

ⓘ  A new Top or Bottom Spotter signal is always generated during a powerful trending move and is itself countertrend.  A Spotter Alert can be dangerous if misinterpreted because Spotters often go unconfirmed and are invalidated instead (which can be a powerful trend-continuation signal).  A Spotter Alert signals a potential exhaustion of momentum and is intended to be used as an early warning signal rather than a trade entry point.

And here is more as it pertains to Confirmation:

There are two parts to generating a Confirmed Spotter signal—the initial Spotter Alert setup and then a follow-through Confirmation.

For a Bottom Spotter to be Confirmed there must be a closing price on a subsequent day that is:

  • Higher than the highest price on the day that the original initial Bottom Spotter alert was generated.

Once a Spotter signal is Confirmed, the odds increase greatly for a countertrend rally to at least the closest stop/reverse line, which is shown on the Multitrend Panel and Multitrend Chart.

Trend-following traders should be prepared to take at least partial profits and/or to properly position protective stops on existing trades.  Countertrend traders can consult the Analysis Page for a countertrend entry signal with target and initial protective stop placement details.

The screen capture above from https://stopsandtargets.com/members/futures/es.html shows the S&P 500 Futures Options summary analysis tab at the time I am typing this (Tuesday at 10:19 PM ET)

 

 

 

To get a confirmation of today’s Bottom Spotter alert, price will first need to work above the short-term stop/reverse line at 2,884.74

…if that happens, the door will open for a powerful rally targeting the ‘next closer stop/reverse line’ (see Stops and Targets help excerpt in green text section above).  That next higher target would be the intermediate stop/reverse line, which is currently located at 3,137.00

There are also two unfilled daily gap targets (between short-term and intermediate stop/reverse lines) above at 2964 and 3114.75  Those breakaway gaps show when and where the pros were forcing the contract lower from the overnight futures.

The highest open gap is above the stop/reverse lines at 3339.25 created on February 24th.  That initial breakaway gap shows exactly when/where the pros kicked this engineered takedown off.

Of course, if price collapses under the Spotter Alert low at 2695.25 then all bets are off (literally), since the Spotter Alert will be immediately invalidated.  Same invalidation holds true for any other index or individual issue. That is the hard deck.  Period!

Head’s up right here everyone… this number of massive spotter signals (921!) doesn’t come along very often.  If this low holds, then there could be amazing buying opportunities ahead–but it all depends on the Spotter Low holding on the initial overnight (tonight) pullback test and all subsequent pullbacks in the coming days/weeks.

For my bearish friends out there holding huge profits (…big fist bump and congrats!)… you might want to pay very close attention to the buy-to-cover suggestions at Stops and Targets if a rally gets going from here on a move above the previous day’s high.  The pros don’t typically launch unless they have enough bears loaded in the pipeline to provide guaranteed buyers at higher prices.  If this massive pullback was just a resetting of the secular bull, then there likely won’t be an opportunity to recover on the next dip for bears.

The ultimate target after a reset will be higher highs–so be patient and be very cautious.

If this massive spotter setup ultimately fails, then we can start thinking about a paradigm change–but so far, this is just a typical pro maneuver.

As I said in a previous post–this whole shindig really comes down to whether or not the market can reverse after all the stops have been run under major support levels (prior pivots).

 

Spotter Confirmation is important–so watch the short-term analysis tabs carefully.  Bears are still good-to-go until/unless price crosses back above the short-term stop/reverse line.  If/when that short-term trend reverses then we could see an impressive launch if the pros decide to reverse and drive this higher.

Just something to think about… we KNOW this was an engineered takedown because the pros created an opening gap on the weekend and then drove the futures down every succeeding night while the Fake News screams doom and gloom.

The pros could have easily stopped this meltdown (they THEY intentionally started) at any time by simply buying the overnight futures.  They clearly didn’t want to.

In my opinion, this is all political maneuvering by the global socialists.  In order to have any chance at all to defeat President Trump in November they have to somehow undermine his amazing economic success.  Nothing else they have tried thus far has worked, and I doubt this scheme will either–but these are desperate times for the globalists, so beware if today’s Spotter lows don’t hold.

Cliff’s Note summary…

  1. Below Tuesday’s lows –> bulls recent woes continue and bears rejoice.
  2. Above Tuesday’s highs –> bulls and bears start buying together.

Watch the short-term timeframe tabs!

…my .02

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