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Last Chance

SnP500 failed to break the double top yesterday on the 30min chart:


Spx and Indu are supposed to break the bottom support but Compq was not a truncated 5th yesterday, so there might still be a chance they may not do so.

Last best hope for the bulls is the $BKX and $Rifin


Target is 735.35 but financials have an intraday fibo extension reversal support at   737.42.  I don't know if it will work or $Rifin will keep going down.

$BKX has so many potential targets on the daily that may or may not work as reversal levels.  However, the 5th wave down (similar to $Rifin) is capable of being the longest wave and has the potential to keep plunging down toward maximum allowed target of 40.13.   A disaster for the bulls if the banks do produce an extended 5th run to the downside.

These are dangerous times to go long since $SOX is either an a-b-c down on daily or a 1-2-3.   Spx and Indu might as well start spiralling down if they break their bottoms of last Monday.

However, the rewards can be substantial too since most of them are Positive Divergences on their daily charts:


It is now a massive struggle between the bulls and the bears.  The Head and Shoulders on the weekly charts are now being threatened by Inverted Head and Shoulders on their daily charts.

Who wins potentially will take the trophy home.


I bought some USO with 5th down target on intraday charts either $32.94 or $32.55 and have already achieved minimum target of 33.45.  Don't know if it will try going for the nominal or start a 1-2-3-4-5 rally with potential target of around $85 for the Sept Oil contract.   I use the Oil contracts as a more precise way of trading the USO.   For Sept oil, it may or may not try to go for nominal target of $73.06.  For USO, my current stop loss is below $31.73.  Don't know the upside but Quick and Dirty target is perhaps in the $38 area.

Will also try to buy FAS if it forms a high probability entry on intraday charts with nominal $18.68 and maximum allowed target of $17.30 just in case it spirals down on intraday charts.  Fas is a potential inverted Head and Shoulders on the daily chart I think worth having at least a "test" buy.  As of now Fas intraday fibo extension reversal support of $19.12 on 15min chart started kicking in, so I will try to buy an a-b-c down on 2min chart.

The tapes are extremely bearish today, so the bears have an upper hand and the selloff might as well extend to tomorrow if a reversal does not happen today.

EOD Update:

Definitely not a good day for the bulls.

The Bearish Engulfing Bar potential meltdown scenario will start kicking in tomorrow if there is nothing good happening overnight or early in the morning:


Financials is still the best looking 1-2-3-4-5 down on the daily charts that could help SnP500 prevent an outright meltdown if it starts a reversal rally or at least make an a-b-c bounce after finalizing a 5th-wave down:


Good luck.

Friday 9:28 am Update:

ES was able to reach 5th target early in the morning:


I don't know if the run down is a 1st wave of the 3rd wave down or an A-wave or a C-wave for an A-B-C down with a C-failure.  The first 2 scenarios will result in lower lows later while the last one is the only bullish scenario with very high probability of breaking above the the highs of August - unless we are actually going into the Grinder Scenario on the weekly chart (the b-wave) in which case additional scenarios will be added to the multiple confusing scenarios that has been developing so far on the daily chart.

I bought ES and YM at 1064.50 and 10,176 at 6:55 am.  Also bought Euro$ at 127.2% fibo extension support near 1.268 since my last buy of 1.2761 trailing stop has been taken out already.

Next buy technique for ES is to buy the pullback after it breaks above the 2-4 Testline using the Testline as a support OR wait for an inv-HnS to form at the bottom of the 1-2-3-4-5 down.

Also bought some FAS close to the $18.68 5th target on the daily chart before the open.

FAS and Oil are my bets.  USO is potentially headed toward the $32.55 target.

Friday EOD Update:

Armageddon did not arrive today but the shorts were able to maximize their profits by leaning on the extremely bearish tapes -  until the $uvol/$dvol, $tick, and intraday momentum indicators multiple divergence buy signals forced them to cover.

Compq was the survivor of the trio not falling below last Monday's low and is a potential zigzag down from Thursday's high with a C-wave failure.  That means it should be able to reach (and most likely be able break above) Thursday's high of 2228.90 with relative ease as long at it stays above Monday's low of 2155.66.

So far, the bulls kept failing to execute any of their attempted intraday bullish scenarios.

But then, never say never.  Let's see how this works.