The full moon today didn't do much for the markets. The low of the day is not a next day phenomenon. It simply points to the extreme condition that are prevailing in the market and a counter rally probability of higher prices in very near future at very high levels. None the less todays performance was pitiful. None of the reasons panned out to produce a plus result. Simply put it was a wrong call.
The first chart is $rut. These are Dino's high to low parallel lines. So Far it is inside an outer channel. If what we know is only 50% ( I believe that) the next 50% is the lower channel that would be quite horrific. I said on Monday I expect serious declines to happen very shortly. The next is TNA and poor TNA can't get anything going any rally is crushed. The bottom of the lower channel is now around 27. The third is SPX and support is around 1032. My sense is we will go much lower than that. 1010 was the low from July if that is taken out we would have our first intra month reversal to the downside since Jan 2009. Not a positive sign at all. The last chart is also SPX but over a longer time period horizon. The red trendline was broken today that is definitely not a good thing. The blue trendline is my D2PL and support on that line is at 1032. SPX is not too far from that. Any rally at this point say 20 points on SPX should be treated as a opportunity to short. The market is extremely week and gaps are appearing that may not be filled for a while. The rain drops are showing next will be water fall. I wasn't quite sure how today's full moon would work it didn't. Next big day is Aug. 26th could be a temporary bottom. I am bearish and this is no time to pussyfoot around. I will short judiciously.