Ouch !!
Ouch !!
Ouch !!

That's the first 3 words that really came to my mind when I pulled out my market overview chart.

All 3 major indexes(SPY, QQQQ, Dow) are showing the same story ...

It's already at the last line of defence, around $109. 

The last 2 days really saw a very very huge drop in the market.

My gut feel really is telling me that, there's gotta be a snapback effect next week.

The VIX chart further strengthen my belief on the snapback effect.

 

WOW !!
WOW !!
WOW !!

It's really really REALLY overly extended to the upper band.

Everytime when there's a huge spike that extremely protrudes at one side of the band, there's really a very high chance that it will cause a snapback effect on the opposite direction.

I'll be looking for some small watchlist on LONG entry in anticipating for this snapback.

Current open position consists of PAC, which was triggered last night.

 

 

 

A look at the USD.

The US dollar seems to be meeting some resistance on the 200MA.

Noticed that, everytime it goes near the 50MA in the past, it will bounce back to it's prior trend. 

The 50MA seems to be holding up pretty well as a support, and it seems to me like it's a pretty neat strategy for entry signals whenever price pulls near it's 50MA, with proper risk/reward and money management, of course.

 

 

Crude Oil has been dropping quite significantly in the near term lately.

But the overall long term support trend line is still pretty much intact.

Next week will be a very important week to see how this chart performs.

A break below the trend line might mean the starting of a new down trend,

while a rebound from the trend line would mean a continuation of the existing higher oil price.

 

 

Something quite interesting in GOLD that I see this week. Would like to talk about Elliot Wave.

From April last year, until December last year, GOLD has made a low, and a high point.

Notice the wave count 1-2-3-4-5 .

The correction wave starts in early December.

A corrective wave count should consists of an A-B-C.

Thus far, we've seen the A-B correction.

If this wave count is correct, we might be anticipating for a C correction, which is suppose to drop below point A.

And that will be around $1050.

If the $1050 holds up solidly, and rebounce after then, there might be a high chance that another up wave is in the making.

 

Gosh .... I'm starting to talk as if i'm having a crystal ball  ........

 

 

 

 

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