Five days down. Woe, woe…

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http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=1&mn=7&dy=0&id=p07596482712&a=408600621

We have pointed out that trading in the box here is most likley a vain enterprise.  It will be even vainer if price breaks this lower  line convincingly.

We started to add shorts, but then looked at the situation and bought instead, expecting a reaction to the 5-days down pattern.  So it’s fifty-fifty now– whether we will see a rally here or a test of the low.  We still expext more downside and are looking for a place to get short.

We repeat our pevious oracular warnings:  Trade in here at your own risk — which will likely be large.

There might be a long scalp here for the adroit trader on the 5 days down.  We didn’t tell you about it.  If anybody asks it was Stephen Cohen.  Illustrated beow.

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http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

We think the market picture takes on a darker cast.  Not as good as the cast of Seeney Todd  but worth a shiver.

 

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