Pre-market Position

The Standard & Poor's 500 Large-Cap Index (SPX) nears the top of its channel, indicating an end to pause days. It may take a half-day excursion up to its longer-term, upper, darker channel line, but then the shorter-term channel runs out of room within the longer-term channel. SPX then should turn down. It is now below its 50-day and 200-day moving averages, and it would appear entering the long-awaited 10-15% correction.

This indicates the bear-market 3X ETFs (FAZ, TZA, ERY) should resume running, and the solars, who have enjoyed this pause, to correct some more. Many of the solars are near their bottom channel line, and, market permitting, would turn upward. LDK seems to be leading the others by a day, so is shown here.

The left-hand, daily graph shows LDK approaching its lower channel boundary, thus good to rise, again, market permitting. The right-hand, hourly graph shows a breakout, with the stock, again, at a low position in the shorter-term channel. If the market meanders sideways for the half-day left before its short-term channel runs out of room within the longer-term channel, LDK may rise, but when the market turns down in earnest, it will, too.

With the market in downtrend and near its upper channel, it is looking for excuse to turn down. It will find it. Be careful out there.
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Somewhere around 11:20, the market overcame the old longer-term trend line, and went higher in the short-term channel. So much for predictions.... [sheepish grin]