Quick Update

The parabolic move giveth and taketh away... Now you understand why I don't want to be involved with a trade that has no 3C support, especially a parabolic move. It took 2 hours yesterday to build the historic move up and a little less than 2.5 hours to tear it down and then some, but it could have gone a lot worse on the open.

"Parabolic moves typically fail just as spectacularly as they start"...

 SPY post minutes gains all gone and then some...

DIA, also taken all post minute gains back and then some...

As well as the IWM.

Intraday TICK has hit -1650, pretty extreme on the downside for intraday breadth.

The question remains, "W,here do we go from here?".

I still believe that Friday's forecast of early week weakness with strength coming in to mid-week earnings and a base being built in the area of last week's lows is still the most probable outcome. Remember the head fake move below last week's lows that most of the averages did not make, the IWM technically did, but it wasn't to the effect it was meant for in base building so that one may be interesting.

The immediate risk remains on the downside, this is a 7 min 3C chart of some of the Index futures like TF/Russell 2000 Futures...

 7 min TF Futures, the immediate risk still remains to the downside as expected yesterday and certainly this morning with negative 5 min charts.

However, this is part of what I based last Friday's "Week Ahead" forecast on, the 30 min charts of Index futures that put in some base building at last week's lows, price has still not made the move that such a base would be capable of if it was only wider with a stable footing rather than a sharp "V" such as it is. This is why I suspect we do finish building a base for a bounce, not anything more than that so I would not read in to it, although to be effective is achieving its ends, it will have to look very strong, this often causes people to lose their nerve which is why I try to anchor expectations in advance, although I'm probably getting ahead of myself at this point.

First things first and that would require a new lows in the SPX and other averages, although the IWM is somewhat of a question mark, it would also require some sideways trade so I wouldn't be worried about the market coming down and immediately shooting back up, we should have plenty of time to adjust positions once we confirm the charts and underlying trade.

Until we reach such a point, any trades I consider highly speculative. 

I'm going to take a look around some other indicators and watchlist assets as well as trade management, but for now I'd be patient, this trade will come to you, you don't need to chase it.