E-Mini S&P (Last:2080.00)

Posted August 6, 6:29 p.m. EDT

Yesterday’s selloff was refreshing, even if bears were unable to hit the four-bagger that we all know is coming.  Maybe later in August — or at least, sometime before the October Crash that too many prognosticators seem to be expecting.  Thursday’s moderate selloff exceeded virtually all of the appealing targets one could have extrapolated from the intraday charts. The one shown is less than stellar because the tail end of the A-B impulse leg failed to exceed any external lows. It’ll do in a pinch, however, so we’ll plan on more downside to at least 2052.00, the D target. If it’s easily exceeded there will still be support near early July’s low around 2038.00. You should bottom-fish the Hidden Pivot levels shown in the chart only if you are  reversing a profitable short position.

Payroll numbers are due out, and DaBoyz will not likely pass up a chance to goose shares whatever the news. My gut feeling is that if the initial move is indeed up, it will be a shorting opportunity. There is no bullish buying interest whatsoever right now, and it has gotten harder and harder for the smart guys to stampede the only buyers left in the game — i.e., short-covering bears. Also, there is no way the payroll numbers — a hoax that has grown all-too-tiresome — can be ostensibly meaningful enough to trigger more than a short flurry of buying.

0806_Rick

Pretty much matches up with what Cobra is expecting also….