Eerie Equilibrium
October 27th, 2008 at 11:08am · 4 Comments
The U.S. stock market is exhibiting an eerie equilibrium this morning. The eMini touched new lows at 825 last night but has recovered all of those losses. The modified DMX indicator on both the 60 and 135 minute time frames are moving horizontally, indicating that this market right now has no trend whatsoever.
If I’m right, the selling is over but stocks don’t yet realize the sellers have left the arena. Range trade selling has appeared this morning at the two attempts to cross 880. Once that number is successfully taken out, then 916-918 becomes important and then the top channel on the 60 minute at 955+ should be easy.
Get ready for the ride up!
click chart to enlarge
click chart to enlarge
Tags: Day Trade · General Market Commentary · S&P 500
4 responses so far ↓
1 bill // Oct 27, 2008 at 7:09 pm
Chris I have been amazed at how your comments have been misconstrued at various sites. Question, is it possible that your call could be more applicable to the CRB & commodities? The CRB has been known to bottom in October on a seasonal basis. Also soybeans are under the most price pressure now.
2 muellerjoerg // Oct 27, 2008 at 10:30 pm
That was a rather sharp move down at the end instead. When sharply down into a FED meeting it usually bounces, though.
Joe
3 alexk // Oct 28, 2008 at 2:28 am
Among major stock markets, it is Japan that made the most convincing low early yesterday. According to the “Autumn Panics” paper, the time window for the maximum panic was 6AM-8PM UT on 26OCT. Japan bottomed about 12 hours later, making a clear new low below that of 10OCT, with the Nikkei dipping briefly below 7000. It is also the Japanese market that was making headlines Monday morning on financial and non-financial sites alike.
This morning, Japan was up more than 10% while the US market looked much less impressive. The choice of markets seems to be quite important at these turning points!
4 humble1 // Oct 28, 2008 at 3:15 am
heng seng is ripping to the upside, too. this looks like a worldwide upthrust. looks like CC has nailed it.
my question:
i am fascinated by CC’s use of de mark’s “range buster” bars and wonder what would be required of the spx (minimum low/high) to do that today for the daily spx bar.
thoughts, anyone?
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