It's in the range of 34, not even close to 30. There is more room to sell, I reckon.

Matt, do you reckon a bounce of the trendline (and 700 area) is due? Early tomorrow morning, perhaps?

This is one of Matt's targets. Take some profits here in case we reverse soon.

I went through the references you provided: very enlightening.

PA, My definition of fail is liabilities exceeding or equal to assets. What is the title of Griffin's book you are recommending? thanks!

PA, Thank you for that piece of data. Last year when $gold was killed in August, three banks were responsible for shorting it: GS, Morgan-Chase and Citibank, if my memory serves me. Those are the agents of the PPT IMO, and they will never be permitted to fail.

That's what I am inclined towards too! Today is the last day of the month -- the recording day for the mutual funds, etc. -- and the last day of the week. I am looking for a bounce to sell short and take them into the next week. Obviously, the PPT stepped in early and propped the market :-)

could anyone clarify what's happening on the market now? the breadth has become a bit more bearish, but the indexes are right on the support/resistance at the moment. Thanks!

I covered all of my shorts, and am going to wait for a rebound to re-enter. The market breadth is not sufficiently bearish this morning. Maybe I am missing a plunge, but I don't get a feel that today is the day. good luck, everyone!

rp, this is brilliant!!

Today we had related news (the budget proposal). Wait till tomorrow to see where the financials are left. If they stay strong, I am going to take profits on my positions and anticipate a small bounce. They need to shake off short sellers before bringing the market lower.

That means that the market should go lower. I've been watching gold stocks today, and they anticipated a decline by going higher. I took 1/3 of the profits on GDX and 1/2 on AUY. I will re-sell them short again after their bounce.

Matt, What is the target for the wave 5 of 3 or of 5 now? Is the the same as 720ish that Steve mentioned in yesterday's update? And does the target depend on how you choose to label the current wave (3 or 5)? Thanks in advance.

So the approach to make money is to trade swings rather than bank on a trend (from having the Nov. lows been broken, etc). It's making money either way, the difference is that it's PPT's money and not the hedge funds' money...

Matt, Do you have custom indicators in the TS? Such as TRIX(17,11) or DPO/PPO, for example?

I don't think we would backtest the broken triangle at 822. I am going to load shorts are the 790 resistance. I am 50% invested on the long side now and hold them merely because the market is so oversold that it would not break down here. I will be out of longs in a day or two, after 780 is broken to the upside. If we ever get there, of course.

Robin, I am quite pleased with the IB. Support is hard to get too, but it's not needed almost all the time. Shorting is occasionally problematic too, especially at the reversal (top or bottom) junctions. I could not TLT short, etc. The trades are pretty cheap and are executed momentarily: no other broker I've used can beat their execution times.

If you want to short anything, use Scottrade: they always have plenty of available stocks. PM me if you need more information.

You have the nerves made of steel! I covered mine too early, with a smaller profit. Matt's prediction of the extent of the retrace has played perfectly! Thanks, Matt!

PA, I heard that opinion on gold. The problem seems to be that $gold does not follow technical analysis to the same extent as everything else. To me the issue is manipulation of gold prices by the big players more than anything else. I use EW analysis only as a road map. A map is not the territory!

The problem with Prechter is that he can see vista but fails to know small details that do not fit. The same as Bill Clinton, who was a bit out of touch with reality.

He is a very bright guy -- His book Conquer the crash  is brilliant -- but he may be a bit off with his timing, IMO. Apparently he believes wave 5 will end any time soon and not some 100 odd points down on the $SPX.