The first chart is the 15 minute NASDAQ Emini futures. Last night I said, "The key elements to watch are the depth and choppiness of the retracement. On the 15 minute chart, I would look for prices to hold below the declining 50 period SMA in order to maintain the corrective bias."

I expected that we might get a choppy reversal attempt after price retested yesterday's lows. If you click on the chart above to enlarge you will see that price observed the declining 50 SMA on both tests. After restesting yesterday's lows, price attempted to reverse but, it couldn't get any traction due to lack of volume.

The NQ chart helps guide my trading. So after failing on the open, I was looking to short weakness.

The next chart is the LEH daily, which I highlighted as a focus list chart a while back. Yesterday the trendline was broken, but had no momentum. Today it broke the base (black line segment) shortly after the open and fell like a hot knife through butter until it capitulated.




HUM was a B&B dummy long that I found on my momentum scan yesterday. If not for today's market weakness, I think this stock could have done much better as it attempts to rally out of a base on the daily.

DRYS was a C&H base & break. There was no momentum beyond the BO bar. When price rallied out of a two bar consolidation and then gave it back, I was stopped out. After all, $133 oil is not favorable for transports.

Normal Fib. extensions for these setups is 100%. When both DRYS and HUM failed, it flagged the overall market weakness and it was back to looking for short setups.


SOHU carved out a bearish rounded double top pattern. The only problem I had with the setup is that it triggered before the FOMC minutes were released. But after reading the minutes, which were pretty gloomy, there was no need to take a partial at the blue support line.