China, daily
Summary
Little to add.
All things considered.. the SSEC looks set for sub 3000 within days.... and then we should see another down wave... much like August.
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As for the US market...
sp'weekly6
I sure am seeing a lot of bullish talk in the last few days.. which I'm finding pretty bizarre. Either this market is building a rather strange floor, or it is simply the case that many are losing sight of the bigger picture. Price structure was a bear flag.. which was broken last Friday. Why would anyone want to be going long mere days after such a key break?
*I would look for the weekly 'rainbow' candle to turn red by Friday.. if sp'1900 or lower, which would offer clarity for next week... and into end month.
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Looking ahead
Thursday will see the weekly jobs, Durable Goods Orders, New Home sales
*Yellen is due to speak at 5pm EST... and Mr Market will be very closely listening.
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Economics/Market talk, Mr Long with Mr Smith
Highly recommended. Please note, there are a few brief audio drops.
*Since it was highlighted in the video, here is the Dow, with the 200 weekly MA
Dow' weekly, 16yr, Elder'
I would imagine there is a high chance of taking out the 200wma in the next down wave... by mid Oct.
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Update from Oscar
Perhaps the most bearish video I've ever seen from Oscar, and makes a number of points that I've also made lately.
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In the trenches
So.. a moderately negative day for equities.. but really, it wasn't great for yours truly... underwater in 4 of 4 positions, although it will only take one sig' down day to turn things around to a very profitable situation.
I would certainly prefer to close out 2-3 positions into the coming weekend. Broadly though, I am pretty confident we'll see the sp'1900 threshold tested by late Friday. Whether we get a weekly close <1900... difficult to say.
Goodnight from London