It Sure Feels Like October...

The bearish abc pattern shown is the one we should be looking at now, since it’s got it all, Hidden Pivot-wise. The p2 secondary pivot at 2110.88 would ordinarily serve as a minimum downside objective for the near term, but my strong gut feeling is that the futures will dive straightaway to d=2090.25 if they crack the midpoint support at 2131.50.  I’ve used lower-case coordinates for the downtrend simply because there is a larger, bullish ABC pattern in effect. It would take quite a plunge to invalidate it — the equivalent of about 1400 Dow points — but this is October, after all, the market is in loonie-bin territory, and I lack the imagination to speculate on what could conceivably keep the broad averages buoyant. The world is falling apart, so why shouldn’t the stock market start reflecting this?   Visit our 24/7 chat room and share timely ideas and real-time results with great traders from around the world.

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