If you look at the blue line on the S and P futures chart you will notice the line is sloping down and the market is hugging it on the way down. If you click the link and look at the bigger version of the chart you will notice that every time the market trades well below the line it snaps back up.
The line represents two standard deviations below the mean. This is a very good indication of when the market is oversold intraday.
It seems that every time the market bounces up off the line the TV talking heads start discussing a market bottom. Not yet.
For more than two weeks we have been forecasting this hard drop in the market based on this formation. The market is in a downside range expansion.
Expect some serious volatility and wide trading ranges. It is almost over though, so be careful.
Hard dips below the line should find good support today.
The line represents two standard deviations below the mean. This is a very good indication of when the market is oversold intraday.
It seems that every time the market bounces up off the line the TV talking heads start discussing a market bottom. Not yet.
For more than two weeks we have been forecasting this hard drop in the market based on this formation. The market is in a downside range expansion.
Expect some serious volatility and wide trading ranges. It is almost over though, so be careful.
Hard dips below the line should find good support today.
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