It looks like there was a type-o in the memo that went around Wall st. this morning. The memo probably read something like "...today we're going to have a stupendously bullish rally."
Then, just before lunch, everyone heard that the memo was supposed to read, "...today we're going to have a stupid bullshit rally." What it left us with was a massive sell-off and gap-fills across the boards. Seriously though, that was a pretty spectacular sell-off. From what I was watching the Russell2000 (IWM) and the S & P led the way down this morning, while the Dow put up quite a struggle to stay afloat.
Whatever chart you look at (of the indices) the line is drawn in the sand. We finally saw a volume surge today with very bearish undertones. We could either fall off the edge tomorrow, or get some choppy indecision. Get ready for some volatility to start off Q4.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
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