Thursday, April 10, 2014

Charts 04-10: Here come the bears!

Well, I certainly hope we can get more of a bounce here, on a ii of 3, before the next downdraft hits.  The chart has room for some more retrace.  I'm looking for another short entry.

[equity] bears on the march

So far, so good.  The bullish blow-off top scenarios are less and less plausible.  As seasoned (scarred and scared) bears, we must acknowledge that they are still possible.  Imagine an overnight announcement of Eurobonds or Euro QE, what that would do.

The tape so far is very promising.

Note that the 1790 bottom on Monday would smack a long-term trendline going back to the 1560 lows.  We need to bounce off this line before breaking it later in the wave series.

SPX 04-10

1 comment:

Permabear Doomster said...

You're way more bearish than me, yet you're calling for a break back to the 1850s..back above the BROKEN threshold.

The bull maniacs ALREADY had their bounce...Tue/Wed....a VERY strong one.

They can't keep battling higher.

Look at the hourly charts..the market is unraveling.. but then, we're only talking about another 3% lower to the primary target.

Daily charts will be burnt out by next Wed/Thursday, so..the time is running out in the current cycle.

If we're going to hit 1770..or lower, then it MUST be across next Mon-Wed'.

ps. next Friday is CLOSED.