Pekelo explains the sell off

Pekelo said:
2. We usually visit the original low in the upcoming days. That is again 2530 ES, so no, it is not over. I expect a huge rally from the lower BB touch on the weekly charts, that is even lower, but still moving.
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Underway, only 12 points to go...

To help with the visualization, here this futures chart showing the Sunday Massacre low too:
(this chart is delayed a bit so the value is different, currently just dipped below 2340)
 

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Buy1Sell2 said:
Very close now to significant move upwards. --Within 10 to 15 pts of occurrence.
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You were saying about the cash leading the futures? :)

Just teasing, I never said they don't, but the overnight action can be still predictive of the cash movement.
 
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I edited my previous post adding: I never said cash doesn't lead the futures, but that futures can have predictive value for the cash.

We just bounced from 2530 ES, as PREDICTED by me using futures. :)

And yes, this is going to be the BOUNCE.
 
As an analogy, the Flash Crash action. IIRC, we visited the Flash Crash's lows a few days or weeks later. The same thing with the Sunday Massacre.

And again, just because we might bounce hard from here I still think below 2500 is still in play, ( the touch of the weekly lower BB, where ever that is)
 
The market is just shaking off fleas.
Sell anything with a PE above 25 combined with a PEG over 2.5.
Time to get back to reality.

"The P/E ratio of any company that's fairly priced will equal its growth rate, i.e., a fairly valued company will have its PEG equal to 1".
-Peter Lynch, "One Up On Wall Street"
 
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