Right - I think a second time through Matt's newsletter is in order.  Certainly SPX last week broke through the bull wedge that had formed on the daily.  So a pullback would be just that, and could easily play out in an inv H/S as Matt has laid out.  I'm not heavily short right now, and I have reasonably tight stops on my shorts (VR, VRSK, GDX, PKI), and I'm not counting on a new bottom although it would not surprise me.

Yes, I remember reading that, and thank you for chiming in this morning.  It's very helpful for me.  For me, as a rank amateur, a major difficulty is dealing with the sheer volume of data and chart patterns, expert analysis and opinion (and otherwise - so much out there!), and market action.  I am mostly short, though, as I have been heeding BPT and posts such as yours.

good trade so far - added to my short this morning at 46.42.  Thanks!

I suppose so, but that always looks like ex post facto analysis to me.  I find it interesting how hard it is to divine where it will go, even given good news and futures action.  If the traders came back to reality, why were their actions counter to that (futures) in the first place?  Know what I mean?  I'm short some things, so I'm certainly relieved, as this morning it looked like I'd be stopped out of a bunch of stuff (still may! you never know).

I'm surprised how weak we are this morning given the Europe news and the futures reaction last night and this morning.

Offered up a lot of short ideas (IDCC, FNGN, SFD, HGG (target 9.50), VRSK ("just starting" as a short), WDC, PANL (target below 27) and only two longs which were given as holds if already in them but not buys - MNST and MO.  Take it for what you will, just thought I'd post the information.

Matt, it's starting to feel like we may get the multiple stochastics buy signal on the 15 min chart - the 60, 89 and 144 are all below 20 but fairly close to crossing.

I stopped out at 9.04, I used a drop below the 20dma as my stop.

not likely, since it's an etf not an individual company, which is much of why CHK has had a bad chart.

5 min chart - classic overshoot of bull wedge and morning star looks to be setting up.

Steve, I wondered if you had any comments about this morning's market gap.  Specifically, whether it fits what you call a "gap of recognition," and what exactly that entails.

AAPL poked up over the 577 mark, and is currently backtesting.  See Matt's chart.  thanks for this one, Matt.

Yeah, good point.  So, why did I take it:

• It broke the pattern (oops no volume, shoulda paid closer attn)
• yesterday and Wed the market looked like it had a good chance of a more substantial move up, esp. w/ the 5-wave pattern on the intraday SPX

Sure, unless it gaps on Monday....

That was a dog!

Maybe so, and in that case Steve's second scenarios looks likely - ABCDE and then down we go for a lower low on SPX.

Ah, that's better!

Well, I shorted the SPY so bring it on.  Seems to be having a hard time letting go of that pivot, though.

There goes the daily pivot.