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. Below is the chart of ESZ (E-mini S&P500).

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?  

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