The Week Ahead

This will be an abbreviated version because I think you know what I expect. The lower lows I mentioned earlier that I suspected we'd see, I think my exact words were, "I don't think we have put in the low yet:, interestingly and predictably came AFTER the Op-Ex Max Pain pin was released. The market for the most part didn't stray too far from yesterday's range, that was the max-pain op-ex pin, but usually around 2-3 p.m. most contracts are taken care of, most contracts expired worthless and the last hour or two, the market can do what it wants and I suspected it would work on that head fake move as the more intense it is, the more convincing it is, the better it work for institutional accumulation as well as for the reversal "sling shot" effect.

So in 3 of 4 major averages we are seeing lower lows, the IWM which already crossed last week's lows yesterday is the only one that isn't making a new lower low and I suspected it would have different relative performance in that regard posted last night in the daily wrap.

The 3C situation is the same,  there is one 3x leveraged long ETF I'm a nano-second from squeezing the trigger on and that's UPRO, 3x long SPX-500, its 3C charts look fantastic, close seconds are the usual suspects I listed earlier.

My gut feeling is that this move is going to have a very sharp, "V" like reversal as it is a head fake move and not the general, larger base reversal and I think that momentum up is going to catch a lot of traders by surprise (short squeezes), which is why I say "sling shot momentum".

I'm still looking and watching because I'm not convinced it doesn't show signs of flipping before the close, but I'm also trying to be as patient as possible and wait for the strong signals I know we should see.

I'm checking a few more things in leading indicators, but I believe we'll be in rally/bounce mode likely by Monday/Tuesday of next week.

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