Wednesday, October 22, 2008


During pre-market, you just have a feeling that there will be a forceful gap that will break through everything. Or, if you don't that gut feeling, you can simply look at a 3 or 5-day chart and look at how the open cut through several support levels. Combine that with the fact that the market didn't even attempt to fill the gap, nor did it have any energy to do so within the first 30-mins. The day slowly drifted down until it quickly hit the abyss at around 3:30PM. The short signal came the moment the gap was forceful enough to not be able to fill at all. A secondary signal came at the first breakdown of the pennant. A third signal came at the breakdown of the flag. The market does give second chances if you miss the first, so pay attention.

S&P 500 1-day

S&P 500 3-day

S&P 500 10-day

VIX 1-day

Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!

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