Tonight's indications.

I'm not going to put out a long post tonight with the stats and all, what is important is for the first time in 4 months the SPX broke the 50 day, it also broke the recent top's support. The concept that I have pushed over and over again because we see it so often is that of a volatility shakeout after important support is broken, the 50 day and the top's neckline are about as important as you get and we just so happened to get a 3C positive divergence suggesting that volatility shakeout is coming. We have a long night and EU open ahead of us, but so far so good and by the way, I think this will be the last move like this before the house of cards falls.

Here's the indications so far tonight

 ES has moved above the "U" bottom, there's that negative leading 3C divergence we have seen the last 2 bounces in the market, this one looks early and would suggest that they aren't wasting any time getting shorts together, even though the snap up would likely be the most volatile we've seen yet. Don't let emotions throw you off the scent.

 Since the close at 20:00 the $AUD is moving up, this is supportive of a bounce so far.

The EUR/USD formed a triangle, a little downside shakeout and it is moving up meaning a weaker dollar, again supportive of a bounce.

AAPL will be key here. If the bounce materializes as expected, this is the one where I'll be looking to load up on some longer term positions, SELL INTO STRENGTH, especially when the underlying 3C trade is showing heavy distribution.

This really feels like we are moving toward that break that doesn't come back and a whole new ball game, one that moves faster and further. Be ready.

I've been answering emails all night and right now I'm burnt out so I'm going to bed early, get some sleep and be fresh for tomorrow and hopefully in the a.m. we'll have a nice move to the upside that we can use to enter short positions. If that happens as all indications have suggested thus far today, I'll be throwing ideas out fast and furious. I think the longer term case has been made so it's time to move from the strategic view to tactical action.

This is where trading gets exciting and making money is, well, fun.

I'll see you in the a.m.