Yesterday, SPX dropped -90.31p, -103p from the Monday “12 seconds above 2800”, following the path of those fib retracements from the move off the NOV 23 LOW to a “T” – right to the 61.8.
The DEC 5 SPX 2730 PUTS were 0.10 – 0.15 for about an hour as we went into the EU Close which @RockStar took @ 0.15. Even though he took his off early (about an hour later) on that 2744 break as it attempted to hit the upper portion of the low retracement target range @ 2736.80 – 2735.59 for 12.34, they went to 32.46; settling @ 32.19 for 213Bagger (21,360%)
SO, the 5th drop > than -3% this year and the 4th biggest one session point drop from CLOSE-to-CLOSE since the Trump Election Win (all 5 happened this year), was yesterday, DEC 4, a stall before a LOWER LOW?
Monday, FEB 5, was the first session SPX opened below 2800 since running up into them on JAN 16 as we put in the then ATH @ 2872.87 on Friday, JAN 26.
By Friday, FEB 2, we had left the 2800s, closing @ 2762.13, -59.85 on the session.
The DROP came the next session, on Monday when SPX dropped to 2638.17 intraday; a LOD -123.96 from the Friday close, which closed +10p above that.
The next session, FEB 6, showed a nice bounce: +62.87p from the prior day’s LOD and +86.26 from the -34.16p overnight gap down, which lead to a slightly higher high on FEB 7 to 2727.67 (+112.89 from the FEB 6 gap down open low into FEB 8…
The 2nd largest point drop and day prior to the BIG FEB 9 CORRECTION LOW; SPX had rejected at that area near 2729 which is when we first deemed that -5% from ATH line SHAQ for Shaquille O’Neal and closed -46.01 from it.
FEB 8 actually gapped up +3.35p before the RUG PULL of -104.45p intraday for the inaugural break of that -10% line from the JAN 26 ATH @ 2585 for a close +0.44 from the LOD: 2580.56.
FEB 9 flushed it on another small gap up (+20.78) for the YTD LOW Burial Site @ 2532.69: just -69.09 from the open and the start of #1 from your Sunday Email:
SPX Week of Dec 3-7
#10; Closed Wednesday; JOBS
Already STRONGLY SHORT off our 2930.61 trigger on SPX from that start of the month, the anniversary of the 2002 BEAR MARKET LOW was met with open arms by BEARS as the SPX dropped from the 2900s 5 days prior to the Wednesday LOW @ 2784.86.
The #8 set up as displayed in the SUnday Email (see above for link), the -146.05 from the ATH and -94.66 from the prior close and exit of the 2800s bottomed @ 2784.86 before closing +0.82 @ 2785.68.
Ending a 6 CONSECUTIVE RED CLOSE Streak, the intermediate-a LOW of the MAJOR-A wave came the following session on OCT 11 @ 2710.51: -57.31 from the OCT 10 CLOSE before that +115p bounce into the following week (OPEX WEEK) @ 2816.94.
Knowing the BEAR MARKET had most likely begun and heading into that OCT 27 (37/100 Declinations Power) astrological date, OCT 24 ended its 6 CONSECUTIVE RED CLOSE Streak with a -84.59p @ 2656.10: +4.21p off the LOD.
The -165.05p move for what we know as intermeidate-c of MAJOR-A was expected to have a symbiotic “c = a” relation with the -230.40p drop that bottomed @ 2710.51 (above).
The BOTTOM came 3 sessions later on OCT 29 @ session @ 2603.54 for -213.40 from that intermediate-b of MAJOR-A high @ 2816.94.
DEC 4 and What Does it Mean?
We opened MONDAY on the BIG GAP UP with a HOD within minutes and sell down. We did the same thing Tuesday and there’s a complete SNAFU backtesting going on by every outlet to point to the reason why the sell down happened.
A -103p drop total for the precision tag of the 61.8 retrace and STOP SWEEP by busting 2700 after a +169p move +6 greater than the #3 set up into the APR high off the APR 2 LOW (2553.80 – 2717.49).
We didn’t have to backtest when you look back at how prepared the #10 set up (see Sunday email above) as we simply needed a top to be able to project/forecast the retracement spots.
The VIX did exactly what we wanted it to do which was alert us that 16.22 was when to GET SHORT the market and that when 22.63 shows, start loosening up (if you haven’t already) on your near-term SHORTS.
With CHINA now beginning to break their silence while be respectful about the memorial service for POTUS 41: George W. Bush, I can see a LOWER LOW possible into Friday’s JOBS Report off of China denying some of Trump’s comments of their commitments.
The DAILY Tis from the #10 set up into this week haven’t been too poorly damaged with the RSI(5) @ 42.40 & SS (9,3) @ 78.15.
If not a FLUSH from China’s silence or the JOBS report Friday with wage growth the main focus, the path forward for a BOUNCE to 2744-2746 before this completing somewhere around 2670(+/- 10) before the intermediate-c of MAJOR-B begins should be clear heading into Monday.
REMEMBER: That NOV 23-28 week putting in that 2631 LOW was very odd so this BY NO MEANS has to bounce upward (although it would trap the most by heading upward into DEC 21 week).
We’ll see how the FUTURES trade tonight and Thursday mornings before another update, but I’d be really really really cautious about thinking you found the bottom and getting LONG. I’m focusing on “hoping” this does bounce as planned for 2744-2746 to begin looking to get a fast SHORT ride for the completion of this intermediate-b wave.
NDX/QQQ/NQ all returned to their -12% lines yesterday and HAVE DEATH CROSSED now with the SPX pending to do so in the coming sessions, but with the DOW still weeks from it without some major negative catalyst which would need to be a GLOBAL one.
The Last TRUE POTUS Patriot #Remember41