Please, send me your signal part (formulas), and I'll test it. Thanks in advance!

Perfectly described. You talk like a professional floor trader with a badge :-). good luck!

We might get a reversal at today's lows on XLF. FWISW. Thanks for the comm.

rp, Any updates on XLF? We are still trending down, I know that. There is a Senate vote scheduled for tomorrow, we could get a bounce on it. For what it's worth.

I cannot make the system work reliably on the SD, in my experience.

Sweet, I like your system! I've been trying to achieve something similar myself, as I cannot practically day trade (I have a day job). Please keep me posted on your improved system, I am interested. thanks for sharing the fruits of your research with us.

rp, It looks like a retest of the resistance line underneath the cusps of two tops. This is bearish, in my view. My instantaneous reaction was to short, once the dust settles (as you said). It should be a fairly low risk trade at this point.

On the other hand, check out Amazon's stock.

Steve also drew the triangle in a similar fashion: http://stockcharts.com/h-sc/ui?s=$INDU&p=D&yr=0&mn=6&dy=0&id=p84620209002&a=157306645&listNum=11. 6200 on the $DJIA and low 600 on $SPX are conservative estimates.

I agree with you that this market is hard to trade. No money is earned easily, if one is independent. Traders are a stern substratum of the investor crowd, they can manage their risks so that they could sleep at night. Good luck!

He misidentified the beginning of the pattern. It started at around 950, which would give a measured target of about 200 points down. It's would be around 540, in accord with cwa82675's prediction for 6200 on the Dow. IMO.

cwa82675, Thanks for the update. You made an excellent call in Wednesday. good luck with your trades!

We might see a bounce on Monday. We've got a good drop so far. A possible target?

The drop so far has been spectacular. i see positive divergence on 5 and 10 minute charts. Do you more room to go down, Matt? Thanks!

its index is $DJUSBM http://stockcharts.com/h-sc/ui?s=$djusbm&p=D&yr=0&mn=8&dy=0&id=p39002259743

http://stockcharts.com/h-sc/ui?s=m&p=D&yr=0&mn=8&dy=0&id=p39002259743

Matt put it into the nightly update last night. The H&S measures to about 6, a 20% move.

Thanks, rp. With the slow stochastic 5,60,3 crossing today and the morning gap being filled and the support of 139 in question, SRS looks like a good trade here. Any projections for it, Chief :-)?

It depends on how you define gambling. Is buying a stock option gambling? Ultra ETFs have much less risk involved compared to options. Is trading short-term gambling too? Is issuing a stimulus package gambling?

By your definition the US is the nation of gamblers then...

I don't have a stockcharts subscription. Could anyone post a .png file of the chart, please?

Also, what's a good way to play wave 3 at this point, assuming that dodgerdog is correct in labeling it? Short XLF or short IYR?  I know of ultra shorts but many indicators gave a buy signal yesterday. I am perplexed...

Dodgerdog, If your comment is true, does it imply that the lows of the last week ought to be broken next?