Well what a week!. Let's take a quick look at last weeks blog and review it...
" Obviously as I say every week this is a pathetic news driven market so one tweet about the soybeans / china etc etc then everything goes up in smoke. I expect a retest in 3K and then downward price action to at least 2956 -2940 area."
Say no more, lots of news ... Impeachment, China almost daily and we hit 45 on ES on the last trading day of the week. I think that's a tick on my part. There is also the ongoing Repo market issue which suggest market fragility and that there is something not quite right at the moment with counterparty risk within the banking sector. Vix is elevated and we have a potential breakout. We also have earnings and the 14th October brings the China meetings which will bring even more volatility. Do we find some lows this week and look to rise into those Chinese meetings?
Ok next week...
ES WP 2975 levels above 2983,92,97,3000,05,12,20,25 below 2968, 2956,50,2918,2912,00,880, as always WP will be key
DOW WP 26,868 above 27,031 27,243, 27,360 below 26,656,500,400,280
NDX 7727. above 7800,827,856,900, below ,700,675,626,500, 575,515,480,333
RUT WP 1533,50,64,78,94,600 below 517,10,06,00,494,478,447
I would like to see 2918 and then a bounce, look for some positive divergence set up (Daily RSI 30), the key will be then will we continue down post the bounce (maybe back to WP) or do we find support and another new high to 3050 area?
Hope this helps have a good week and catch you on Twitter. Clearly with this type of market please make sure your stops are tight! TI