Remember that Russia knew this was coming and had plenty of time to prepare. So, they would have been large buyers of gold (and FX)  in anticipation of getting hit with sanctions. The sanctions of course hammer the Ruble and therefore Russia could anticipate needing to defend it. Now that they have taken action, the Ruble got hit, Russia defended it with bank interventions, and so it will need to sell Gold/FX to fund those operations. (Also, it could sell gold simply to lock in profits on news it controlled). In summary, what was a tailwind to Gold in a run up to this event is now a headwind. So, it was common sense to sell the news and plug any buyers who were paying up out of fear of the news. 

Looking at ARKK under 60$ made me think of a conversation I had here with another member about a year ago when it was close to $120. Figured it is worth bringing up given what has transpired since.  None of these moves are without precedent. 

Yesterday was the first daily -9 Sequential in almost a year. It is also now the closest it has been to its TDST daily support and 200 DMA  in months.  Also, very to close its .618 to its May 2021 low. 

Not surprisingly, rally failed at the confluence of the .382 and centerline of the channel. The bearish view would be that was a Wave 4 high as well.

https://sblk.io/2022/1/b66KULsPcEsefGR.png

Sydney…it is because the later entries, the lower Delta trades, will have a higher gamma. The option's gamma is the measure  of the option’s rate of change of the Delta. 

Rareto….The reason was we met the downside target on the SPX, which was the weekly propulsion down target. It was 420. Today’s low was 420.

That has been a worst case support level for this move I have seen being discussed for weeks with Funds controlling many billions. The fact that today was a perfected daily -9 on btc also helped. Additionally, the mid-day (around 1pm) TDST buy signal in BTC was the spark that set the flame. 

These types of moves to and from propulsion levels are a daily occurrence in the crypto markets, which is one of the reasons the crypto markets are so profitable for advanced traders. Literally almost everyday there are large cap cryptos moving much more than the spx/qqqs did today and the direct correlation to technical indicators, especially Demark Sequential and Propulsion, are even better than in equities, because the percent of directional volume by quant programs is so much higher in crypto. 

Classic D Wave target for Wave C, which is a 1.618 projection of Wave A and was shown as the green horizontal, was 440. That was a classic premeditated measured move pattern into overhead resistance because the overhead TDST resistance, shown as the red hashed line in the charts, was also 440.

If there was any question if that was the correct patter to watch, the fact that we are currently at 440 should answer it. 

C wave qualifications now met…not optimal that it is occuring with a +13 count, but not surprising given the current environment either.  

Edz…that was one of the two I am sure people could envision. I would not consider either to be true HNS patterns.
Remember, the neckline of a true head and shoulders is supposed to represent an important price level where there is major resistance/support that is later broken. That break should then result in a fairly predictable measured move, neither of those patterns had those characteristics.
Juxtopse that to the actual pattern, which was the ABC and you will see how quant programs could all be recognizing the underlying wave counts and trading it.

The programs do that using the same program I do, which is Demark’s D Wave Study, which unlike elliot is not subjective and is fully quantifyable because the rules are slightly different.  

While I can see what you are looking at on a 1 min, no it is not an HNS. Go to a 5 min. It is an ABC advance setting up targeting the area of the gap fill. (That is supported by the 5 wave rally off the lows (wave a) followed by a three wave pullback to support (wave b) on the 1 min chart.)

Doesnt mean the pattern cant fail, but that is what it is for now. 

One other thing I should have added, shown on my chart….no coincidence that the weekly Propulsion Momentum Down target is 420, and the spike low this morning was 420. 

Kev bouncing off the centerline of the weekly pitchfork and very near weekly TDST support.

https://sblk.io/2022/1/vbblfzs9UAtMf1d.png

Last four 4 hour TDST buy signals in BTC. The current one just triggered. 

SLV gapping over the decade old Fan Line

So predictable...

Silver gapped up to the 100% Fib projection of Friday’s rally off the low and that was it. That ended an A-B-C corrective for now. 

I will update on why I posted the chart of the bitcoin low as it occured earlier today, but here is an update for now.

The 9 at the .618 is essentially the inverse of the -13 at the bottom of the Fib fork channel when I shared earlier. 

Trapped below the downtrend and the rising median line. Consolidating for a move