Master Che's  Instablog

10/6/11

10:15EST

ESZ11:

I mentioned this a few days ago

After the fast move up from 1072.50 to 1119.75

The following day we needed to head back down to 1085/1100 and then create proper support structures, not doing so meant this upside move is on borrowed time; because it has no internal support; meaning it can be taken out in a matter of hours not days.

Never the less

This current move down should reach key pivotal support levels, if it holds the potential upside expands.

1124.50 is pivotal support for 1183/1199

1114.00 is pivotal support for 1167.00/1171.00

it’s a straddle, meaning 1124.50 is currently closer to the immediate price, yet its up price target is further away, therefore 1114.00 is far more important

Now term:

Down to 1123.00/1124.75 expect a bounce or even a termination of this move down, although not nearing the 1114ish level is quite a bit less bullish on this current bull dip. Instead reaching 1112.50/1115 (it should) and heading back up greatly expands the time factor (longevity) and range.

The Most bullish scenario is currently down to 1113/1115, then up to 1167/71, then down to 1123/25 and then up to 1183/1199 and probably much higher

Currently not reaching 1123/1125 is quite bearish and drastically reduces the upside time and range, this dip – 1129 low) has moved up the INFLICTION level,

It now begins at 1155.50/1156.00

If you remember last week I mentioned many times before we break out (down) from this sideways action (from 8/8 to now) we always visit, near, or simply test the KEY OAV at 1166.75/1167.00; it’s the key level (BB) of the market from 8/8 to now.

Infliction levels are failure or reversal levels

Don’t forget this is a bull dip, the lower it goes (without taking out 1077/1083.00) the more bullish it is, especially if it drops to the 1080/1100 and stays there for a few days, (without new lows) then it becomes ULTRA BULLISH (1250/1275 or higher)