Daily Review 2009-10-01

OK, Just like I was predicted last night, all 3 major indices completed another 3BC pattern today, so, this is a "3BC + 3BC" pattern, extremely bearish, and VIX, on the opposite side, has "3WS + 3WS" pattern, extremely bullish.

So, what could happen next?

First of all, we got a first DJI -200 red bar today, keep in mind, this kind of big red bar never comes alone! On the chart, it is still missing -300, -400 even -500 bars, this means, more big red bars are on the way... when? I am not the God, so, I don't know, and this is not important... the trend is more important than predicting what might happen the next day...

Tomorrow, the Unemployment rate will be out, and many trapped bulls are hoping this could be a life saving jacket to save them from sink deep into the water..., but what I want to point out is: You better don't count on that! Why?

That report, to you and to me, might be a news, but, to many "insiders" on the Wall St., that is already an "old news", if that report could do some positive impacts to the market, then, why no big money was buying those "really cheap stocks (if you compare thier price with a few days ago)" near market close today?? Not even any "short covering" action into close??

Hehe... think about it, and get your fingers crossed if you are fully loaded on the long side!

Good Luck!

1. DJI Daily:

LL.LH big red bar with volume steady. This is a very scary chart, line G was a minor support for today, but it only worked a few hours intraday, and finally DJI closed below G at mkt close today, so, next support is at line S near 9390 for tomorrow. But, this is not the worst part yet, the worst part is: below line S, there is virtually no support line until line A. Hoho... what if it closes below line S tomorrow? Then, what could happen next Monday?



2. COMPQ Daily:

LL.LH big red bar, volume steady, cut thru line S1, rising wedge S1/B broke down, next support at D, Gap 3 on chart is still open, so, if it does a downward gap in the morning, then, that will give us an IR on chart!


3. SPX Daily:

LL.LH, open at day high, close at day low big red bar, decisive break down of Rising Wedge E' & S3. Volume didn't spike, this means, no panic yet... green gap still open, so, a morning downward gap tmr will create an IR on chart. next support at S2.



4. VIX Daily:

HH.HL break out candle, 3WS+3WS pattern, 2nd time closed above the red pressure clouds... more confirmation is needed.



5. $USD Daily:

HH.HL green bar, closed above R2, next resistance is line B.



More details posted here.