QUICK UPDATE: One dreadful opening is all it took. The S&P 500 (SPX) is right in the realm of a snap back if we use the four hour SPX time frame and the various down side levels. The TD Buy Setup should be able to record a 9 count early in the session, and although it may not be ‘perfected’ (8 or 9 bar trading at or below bar 7’s low at 1867.01), we will give it a pass considering the drastic opening yesterday.
If the SPX does it get that bounce on time, the quality of that bounce will be judged if the SPX can close above 1971.95 today. If the selling continues hard past the 1850.61 weekly TDST Support level, then it’s conceivable that we are going through something much more brutal than selling off excess bullishness. Something akin to Tom McClellan’s convincing chart that is both uncanny and virtually unexplainable using Eurodollar data culled from the Commitment of Trader’s report. See McClellan’s link here for his explanation: http://www.mcoscillator.com/