1. 2009 Low – 666; 2010 High – 1,219. 38.2% retrace = 1,008. Thursday's low was 1010. 2. TLT didn't come close yesterday to testing Thursday's high. I know we are all supposed to worship the $VIX as the fear index but long term treasuries are the true barometer of fear in the form of flight to quality. 3. Almost every major index is following its downsloping trendline since the May flash crash. 4. CNBC has picked up on the break of 1040, published Prechter's views, and pointed out the H&S formation. If CNBC sees it I don't want it.
To me, this is a very simple view of a complicated market. I've attached the chart of the $SPX.