1:00pm – A small measured move pullback meets target measurements following a lunch consolidation.  A bull flag setup for the afternoon session.

2:40pm update – bull flag targets = retest of previous spike highs.  This is the third push higher, so beware of higher prices / lower momentum divergence.

3:00pm – A full measured move target tag.

This lift in equities, as mentioned yesterday, is on the reversal stick of the US dollar – as the dollar falls, equities lift.

4:20pm – markets settle down with the news crossing the tape that mark-to-market accounting will be reconsidered.

The hard sell-off into the close and overlapping wave structure suggests a move to retest the 700 level.  A wolfewave pattern on the 5min chart.

11:15am – Measured move target is achieved based on bull flag setup.

1:45pm update – early setup for measured move target by Buffy is called at 10am. Target is tagged at the beginning of PM session.

2:00pm profit taking level – pattern traders will also recognize the gartley on larger timescale and definitely ring the cash register here.

3:00pm – just a quick note to remark on the correlation of a short USD (US dollar) position to equity markets.  Showing the EUR/USD cross.

I never imagined it was possible to trade through the historic ‘crash’ day that the media promised on the open. For pattern traders, the name of the game is measured moves in the form of bull and bear flags, but Gartley pattern setup is giving the best edge.

The afternoon session presents a bull Gartley pattern.

End of day structure