GDP numbers are released and markets immediately goes into reactionary mode. At 2:30 pm a wolfewave pattern sets up on the 5- and 15-minute time frames. It also represents a measured move target level following a noon swing high.  Thanks to Huddy in b-line channel for the chart.

Caution Ahead

The VIX, or volatility index has produced a falling wedge pattern on the daily charts and on Wednesday tagged the 78.6% retracement level.  It also produced a solid bounce off the 200 day moving average around 36.5 and 2007 spike highs of 37.5 (past resistance becomes future support) as well as a pixel-perfect trend line test combined with a positive divergence (lower prices, higher momentum).  This indicator moves inverse to the stock market, and therefore is giving a bearish signal for equities.

Session Start: Fri Oct 10 15:13:05 2008
Session Ident: #pitstock

[15:13] good afternoon
[15:14] wondering if ^Sam^ is covering today
[15:14] does Sam feel the bottom today?
[15:15] is very important .. he is the only one I really trust here
[15:16] I am covering today .. fwiw
[15:16] been laying low .. very low .. today is very KEY, however
[15:19] feels like the indicies have traded into the 2003 “pocket” as Linda describes it
[15:23] intraday higher-low put in .. use today’s intraday chart as gameplan for retest next week
[15:24] today feels like -the- KEY .. was looking for a confirm from Sam .. but can’t find him on all IRC

[15:39] am considering turning cash into $AUD (aussie) on fx slam
[15:40] trades as ADX8 .. wolfewave setting up on daily
[15:40] whoops .. ADZ8

[15:41] all indicies tagged intraday measured move off AM low spike
[15:50] SPX .. montly .. trades into the 2002-2003 “pocket” .. http://chart.nu/chart?ticker=SPX&m&y_start=2000

[16:07] looking for narrow trading range next week
[16:09] sideways .. trying to establish 2002-2003 lows as a floor .. a trading range (with lower VIX readings)
[16:10] VIX cannot go higher .. just not possible from today’s action
[16:12] dunno where this junk comes form in the data .. but this kinda bad data seems to happen at key turns .. http://chart.nu/chart?ticker=VIX&m_start=2&y_start=2008&filter=21

[16:12] today .. as far as a trading bottom .. just feels different from past weeks
[16:14] anybody figure out if PPT stepped in on open @ 9:55?

[16:48] the nasty thing is .. we are entering a presidential cyle .. which always tend to bottom in the 2nd year (2002-2003 = Shrub, 1990-1991 = Bush, 1982-1983 = Reagan) .. gonna have to wait for final say in 2010
[16:50] “rescue” the economy 2 years in .. in time for the next election cycle (can blame all the existing conditions on the previous administration)
[16:51] the “stars” also point that way .. astroecon
[16:54] a free update from 2007 .. http://www.astroecon.com/lev2/year2007opinA.htm
[17:04] At or around the 2008 election is when I expect the wave THREE of C to get going. In the context of the bigger picture this wave THREE will be oddly sharp at the starting gate with little or no sub wave two within it but as it progresses will also be constantly decelerating in a pattern that is created by forced liquidations.
[17:05] from article above .. food for thought .. nite all