THE DOT - if this turns orange or red be alert

Thursday, May 20, 2010

part 2

3. the downside action in the markets goes as expected as a slow motion version of the flash-crash. now the wave structure gets a clearer shape as ı expect the current wave to run into good support around the 1050 spx and bounce from that level probably up to 1150 before declining to 900 thereafter. as we have option expiration tomorrow and at close today and one of my very short term indicators confirms the possibility of a bounce in the second part of today - the classic expiration manipulation works most of the time and we have plenty of puts on the line right now. ın any case the weekly price action and indicators do add downside momentum so hang on to your shorts for now.tommorows german vote on EU TARP might spark a brief rally later friday and early monday which should be sold as we have to test the 6th may lows.

excerpt some pripheral news as we have plenty of action along stockmarkets mostly wild swings in currencies

Market Plunge Guaranteed With Critical German Vote Tomorrow; Merkel Warns Of EMU Failure If Bundestag Vote Doesn't Pass

Pan-European Bank Run Is Now On: Capital Flight From UK To Switzerland, As GBPCHF Intervention Strikes Next

EURJPY Liquidations Take Pair Below 110, 100 pip Move In Seconds; BOJ Expected To Intervene Imminently

No comments:

About Me

I am a professional independent trader