WATCHING REVERSALS

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Overnight Futures are down - "China is panic crashing" is the word today.  Half of the stocks trading in China were halted to prevent a landslide crash. So far I just see March prices ahead. 3 months ago the SSEC was here.  See the chart of Greed & Fear below.

SSEC

July 6 chart :  Yesterday I was pointing out several reasons why I would expect to see a reversal higher in the markets.  It appeared that we also found support at the 200sma Monday, but Notice what I wrote on this clip from yesterdays report  (underlined in Red).   It just seemed likely that we would get a stop run below the 200sma and then a reversal higher. LOOK at that CPCE matching OCTOBERS market lows!  (Click to enlarge)

IN THE REPORT

We got the shake out below the 200sma and a reversal. Our futures are down again, will we get another reversal higher today? If so, it could be a buying opportunity, let me explain...

SPX 7-7

Here is the NASDAQ -

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Bounces

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When most people first start trading, they see a market that is running up,up ,up - or falling down, down, down and they want to jump in and get some of that action. What happens? As soon as they make their move the market does a 180 and heads in the opposite direction due to extremes.  We may be at the point that extremes are about to cause some decent bounces. Lets look at some charts.

SPX   July 1 - the original thinking was that this could be a bear flag and become an a-b-c down.

SPX 7-1

SPX - with a lighter volume drop to the 200sma so far , and for other reasons mentioned further in this report, I am thinking we get a bounce here soon.

SPX 7-6

There is a chance that that Bounce is bigger than expected if we get a short covering rally.  Let me explain.

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Lots Of Red So Far

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I gathered all of my charts Sunday morning and most of them looked like they were indicating lower prices.  Monday morning , after the Greek Vote,  the color of the day certainly does looks to be RED so far.  Lets take a look at the charts .

Here is a quick glance of the futures as I write

Futues

This was my chart for the SPX posted here for July 1- it looked like it might have been a bear flag forming.

SPX 7-1   Read More