If the bears can close under 1300, then a major collapse is viable later next week, to around 1225/00.
IWM (representing rus'2000)
Dow
Sp,daily5
Transports
Summary
Very choppy day. The open was broadly higher, but those gains sure were weak, and the SP' saw a very nice reversal lower to 1331. Yet,..we rallied to 1344..only to form a double top..and rollover into the close.
Certainly, everything is set up for the bears tomorrow. ALL cycles are now primed for big declines across both Thursday and Friday. Bears very much has a good opportunity to hit the 1310/00 by the Friday close.
Considering the drop from 1380 last Thursday, a 2-3 day bounce at the 1300 level would seem very reasonable, and right now, if we are around 1300 at the Friday close, I'd look for a little bounce to around 1325/30 by next Wednesday.
A few are suggesting there might even be QE3 next Wednesday. See video below. Personally, no way can I see that, my target for the Bernanke to fire his next bullet..Thursday Sept'13. Bears..make note of that key date.
A little more later.