More Data

This is just more data that backs up my position that we will almost certainly see a correction/bounce to the upside, the thing is, saying that or hearing that right now sound reasonable and most people feel like, "OK, cool, this will be an opportunity like he's been talking about".

However, Wall St. rarely does anything half-tooshied. When they wanted a low volatility melt up to drag dumb money back into the market with no pullbacks to scare them and a bunch of nightly news headlines, "This is the highest the Dow has been since XYZ0!" they did it and did it well.

When they want to scare people out of positions, they do it and do it well, you'll see a downside move like yesterday that sends longs in to a panic, shorts chased it and likely we'll get an upside move that may indeed make that all-time new high in the Dow that CNBC was talking about yesterday morning just before the market crashed.

The point is, be prepared for an emotional assault that is meant to touch on the two things that move the market, FEAR and GREED. 

This is all part of my market Pendulum concept, it swings way too far one way and way too far the other, don't fear it, it truly is a gift/opportunity.

To give you some proof to sustain you, although I doubt you'll recall if we get the kind of move I'd expect, here are a few charts....

 VXX which is the short term futures for the VIX, moves inversely vs, the market, market down, VXX/VIX up. This 10 min chart shows the positive divergence going in to yesterday's bloodbath and the VXX did well on that move, up nearly 14% yesterday.

However check out today's relative negative divergence at new highs, this suggests a near term pullback in the VXX (which means the market moves up near term).

 However if we look at the charts that really matter here, the 30 min VXX chart shows no sign whatsoever of any distribution, it is in line and positive, meaning the move should be short term only and the VXX continues higher after that, traders who have built a longer term long in VXX are not selling it, just some people like us trading around the market, market makers, specialists, traders, etc.

TLT-20+ year Treasuries-The Flight to Safety Trade

 We looked at this yesterday, the 1 min chart (intraday) shows distribution, but that's short term as TLT also trades opposite the market.

At a more importnat 15 min chart TLT is in line perfectly, no distribution. So if we get a very sharp bounce to the upside, try to remember these things (I've put a lot out there) and not react emotionally, but use the gift given as just that.