Futures are down the max. I posted a crash scenario about a month ago and I’ve updated the charts here. The futures are usually a bad indicator of the day. The volume is low and panics are easy to engineer. The big boyz can run a misdirection play for little money before the market opens. But still, a limit down futures open isn’t something that happens very often and should be taken seriously.
I look at this as the final test of the October 10 low. If price recovers interday then the test is successful. If not, then the 1×4 Gann angle is a real possibility. This level is 50% lower in price and could happen in days - not weeks or months. A note about tests - they can fail. The market will go where it wants to go. My self appointed job is to point out these key test areas and report what has happened. I report - you decide… 
The upside of this move for people with some cash today is that a typical rebound from this crash would bring in 100% gains off the low. The key is to stay focused and take a shot at the 1×4 angle if a bounce occurs as expected.
The close today will tell a lot about where we will go next week. A weak close below the October 10 low will almost certainly bring large scale selling next week.
Tags: Dow Jones Industrial Average · Gann Angle Fan · Standard and Poor's 500 (SP500)8 Comments
8 responses so far ↓
Wooooooooooeeee, I saw that the foreign Mkts where down, but hey that is nothing unusual, I just kept looking at the scenerio that I have given you the other day, that we had never done 3 of 3 because there where no gaps in my weekly charts, and the way the triangle scenario was going bad, but never did I think this would happen. Panic school scenerio’s get ready, no time for your head to spin, but I have never traded anything like this….sheww weeee!.
Libby - Thanks for your comments over the past few months. You have gotten me to look at other possibilities which has helped my analysis. Please keep up the good work.
Yes, Andy, as my mentor used to say to me Jedi, you are not as young as you Look, we need to stick together during times like this. Just remember one thing….Patience is important right now, Young Bernanke is shoving $ in right now, don’t jump in to this mess, Mon or Tues, could be 1929,1987, all over again, and listen to the traders, they just seem so calm….errry calm….I like that. They think they know what they are doing, Art Hogan calmed them, but I can bet $ that Art Hogan is not in all the way in this Market…Hee Hee, He’s a show caser for NYSE to calm the storm about to errupt. Remember we usually get cracked up side of our heads when we least expect it, and everyone is still thinking Triangle….retest the bottom, buy buy, get in, No Go with the “Obi One” Art Cashen…..be patient, You know what I mean Andy, follow the charts, they are our lifes blood right now. Now if that doesn’t get you some Hits I just don’t know what else to write or who’s names to include…LOL!
Libby - Yes. Cashin (great name for his job). Buffett. I’m actually doing some fundie analysis for fun now - day off from work. Some lady on CNBC just said she thinks the forward earnings on the SP500 are about $75 so I’m playing around to see where that really puts us…. Gotta finish soon because we have Cub Scout popcorn to sell…
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Just for fun… please only for fun… my wife just sent this to me… http://www.cnnbcvideo.com/index.html?nid=7ePrQZPzxHJZ_dBK4umjhjM2ODA4MzM-&referred_by=11171670-gdr0E6x
Oh that was awsome! Gee maybe I should check my spelling more often…LOL Your wife sure has a sense of humor! Can you imagine what kind of riots there will be if the guy doesn’t win…wholly Sh-t! I myself Andy don’t give a Sh-t, who wins, they will only go down as the worst Pres. in History……sad (:.
Go to your local Flea Market it will sell good there…later Andy.
go short……
Short everything!