Bears shouldn’t get their hopes too high, since, as I mentioned elsewhere, an entire week’s hard-won losses could be recouped by DaBoyz in mere minutes if a mote of short-squeezable news comes across the tape. That is what they are waiting patiently for, although for the time being there doesn’t seem to be enough legitimate buying to hold stocks aloft for more than the opening minutes of a given session. Notice in the chart that the selloff from last week’s highs has exceeded three prior lows, two of them ‘externals’. A key battle between bulls and bears lies ahead, at the still undetermined ‘p’ midpoint support of the hypothetical pattern shown. If this is a bear market a-borning, the support should be obliterated on first contact. Hidden Pivot scalpers should note that yesterday’s best shorting opportunities occurred after the creation of second point ‘C’. This is most clearly visible on the five-minute chart.
