Back from the dead and about to get above the long downtrend…

From CreateCoin Premium:

During the past few weeks, the market has been hammering out the lower portion of its new trading range. This new range will probably turn out to be about the middle of a much longer-term trading range that we settle into over the next months and perhaps years. But this near-term range is getting tighter and tighter–like a noose around the markets neck. Actually, it is not around the markets neck—it is around the near-term trader-types who are being whipsawed daily. When traversing about fifty S&P points both up and down every few days, it makes for nailing almost everyone with near-term losses at some point in the cycle. That is why accumulation and establishment of intermediate-term positions is our strategy.

Dow 10300 & SPX 1100. Those are your upside targets because that is where obvious resitance is. Could we shoot right through it? Not without some time and trouble.

Unless you are willing to initially suffer, you cannot take a trading position in expectation of anything. The noose is getting tighter and tighter between SPX 1040 and 1080. We transvere that many points in a day. We will either breakout or breakdown soon. Or we could just die on the vine–but with the Knaves at work on their aluminum-cased, water-cooled, Intel-powered chariots, that cannot happen at this time.

The flash crash was just the shot across the bow. Those lows are now history for the major averages.

But something worse just happened since Friday’s rout. The vast majority of “other stocks” that are not big in the indices and subject to the whims of futures trading, have gotten smashed.

The 3 day losses in a tremendous number of lower priced stock is 10-20%. This is happening while the market is down about 5%. All the gains that were made after the July ramp after the bank’s bullshit “Stress Test”  have now been given back.

These prices break their recent range lows and the majority of stocks have now fulfilled a test of the primary breakouts. It is not pretty, but they are one of the signals that the end of this destructive correction is nearing completion.

Some will speculate that Apple and whatever leadership is left must crash before a bottom is in. Others say a whoosh to SPX 1000 is needed. That may be true but it looks that 1020 is the real number. And nobody will sell Apple as the iPhone 4 is coming.

Will you buy there or will you wait for the test? There won’t be a test because testing is what the markets used to do. With HFT and follow the leader trading, you won’t get the chance. It’s all one way or the other.

Someone said it best in another thread. Some guy in Hungary scratched his balls and we are down 5%. It is a shame the market is run by fools. But we need to be ready for the moments they become really foolish. That time is fast approaching.

ADDENDUM: Perfect double bottom at the SPX May 25 low… 11:15am