Today was another historic day. Market opened deeply lower and within minutes went lower than 1095 on spx the previous low so did the FAS below 23.5. That was lower low and that is not a very bullish sign. 10.00 was a low and the markets and FAS started a rally that lasted for about 2 hours. This being opex and the fear factor at high levels FAS and markets drifted lower and accelerated rather rapidly to close at the worst levels of the day. At right is a 1 minute chart of FAS for today. I have circled three failed attempts and fourth attempt that was successful in breaking the trend line and real rapid deceleration once the line is broken. This is called Gann rule of 4 the fourth attempt is highly likely to succeed. This is a very useful rule to know.
The chart on the left is SPX on a daily basis. On my last blog I mentioned how these humps are resolved like hot knife thru butter and that is what happened today. SPX broke the upward trend line and if it were to lose as much as it has done that would puts us around 910. Things are getting ugly. The down side is always much faster than upside. This is something I keep in the back of my mind. In 1987 the first half of decline happened in 7 weeks and the last half in one day. Before I get all scared out and everything today SPX and everything closed at the low of the day. That is actually very bullish. I did a study on my May 2nd blog. 100% probability that we will go higher. There at many excellent analyst on our CCL two in particular I want to mention are Elliot Trader or ET and Apartofny. They both provide extremely timely and accurate charts and EW counts and variations. Click on the CCL blue box below and check it out. I will be bullish at least once tomorrow.