S&P

Got to watch a strong trade through 1072. If we stay below we are turning the tide to the bears even after the move up today

Art Cashin

Art Cashin is one of the few person I like to listen on CNBC. He has over 50 years of floor experience and because of his experience he is one of the few left who have seen everything the market has done.
About an hour ago he said it was possible for the DOW yesterday to decline over 800 points (I am amazed at that) and had to really listen what is explanation was. Man he was dead on and he basically said the market is following the Euro/Dollar basically tick for tick. Art noted that any strength in the dollar will unravel us much lower which is in line to what I have been saying about a declining dollar would make market rise because of the devaluation of the dollar.
Art doesn't not believe this morning GDP numbers and I will be looking in the coming days how we really digest that number.
13 minutes in we are up but we will see how we do after lunch.

Talk to you later tonight.

MARKETJEDI

Crude Update

We have basically reached the 38.2% retracement level.
If this is a wave 4 of any degree, we probably won't get much past the 38.2% level. Should we have ended a structure at the 81.99 H, again of any degree, we should expect the retracement process to be much deeper than a 38.2%.
It appears to me that we may have traced a H/S topping pattern. If this is the case, it would measure down to around the 61.8% retrace level at 73.81.
Watch price as it retests the broken neckline. A failure here would allow good entry for a short.
RSI has reached a level on this 120 minute chart where we should expect at least some type of bounce.
The dollar continues to make new highs from the move off its 75.085 L. This is worth paying attention to folks.

Market

Yesterday's range on the ES was 25 handles, while volume was very heavy and expanding.
Volume has continued to expand during this sell off, suggesting that distribution has been taking place.