Tuesday, July 24, 2012

Charts 7/24

Another tricky night here.  We had that rough AH session with the Apple earnings, but the overnight /ES is just not going anywhere.  If the Euro catches a bid overnight, maybe we can get a .6 retrace up to the pink trendline on my chart tomorrow.

It would close a gap and surprise many, for sure.  And it would be followed by a very nasty move south.

If we continue to selloff tomorrow, then the count puts us in a 3 of 3 scenario, getting down to the 1300 area by early Thursday.  It would look something like the steep, narrow channel I sketched last night.

By rallying tomorrow, we will actually make the next drop even more nasty.  One way or another we want to bottom in the 1260 area by next week's full moon and FOMC lemon party.

The deep wave 2 scenario


matt_bear said...

overnight held. still in long.

the overnight magic futes are real...but today proves they are corrupt.

christiangustafson said...

It's like I said, the Euro caught a bid overnight.

lunatic fringe said...

CG- We've made a nice channel up over the past couple weeks. Check it out...