Home > Finance > What a FreeFall !!

What a FreeFall !!

  • Today’s freefall in the markets was described as a “Fat Finger” event and finger being pointed to one trade in the major bank! What I don’t get is how many fingers were there??? Almost all stocks took major plunge!!  To me it seems impossible to have so many bad trades!
  • History has sh0wn that when the damage is done, they find a scapegoat who can be blamed for the event!!
  • MY guess is that everything is fine with the “trading system” . It was a multi-stops triggered waterfall.

I observed this rally is forming a curve [See chart above] …visualize a cliff which flattens out at the top then a free fall. If this concept is true we could be bouncing off from SPX 1000-1050 range forming a 2nd shoulder of H&S pattern before taking a nose dive.

As far as my Projection goes, look at the chart.

  • Today 21EMA crossed 34EMA….this will have atleast some follow through to the downside.
  • Other indicators also point to the further low numbers and based on the chart I project SPX 1025-1050 (but my hunch says as low as 950-1000 …its just a hunch!! ).

Cheers!

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Categories: Finance
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