Combat engineer failed to lay the bridge across

It has been an interesting Y2016, wasn't it?  The coaster ride was more wild than Y2015. 

Before we take a look at what happened over the past 4 weeks, let me recap some of the important points that I highlighted in my past Y2016 posted.  

1-Jan :

1) I posted 2 charts - Taiwan index and DAX (http://achua138.blogspot.sg/2016/01/prepare-for-much-more-interesting-2016.html).  I mentioned this - Elliott Wave

2) US election, a similar approach (how Taiwan supported their market during their president election) but different version on the US market. 

3) 温水煮青蛙, and I warned a much more interesting Y2016 drama is on the way.

9-Jan:

1) Once again I mentioned the 温水煮青蛙 and

2) I highlighted the "ba ku teh" soup story

3) Many things that happened over the past few years were artificial.

4) Any retracement/pull back is an opportunity for you to sell if you are holding any long position.  In Chinese, I called it 逃命反弹.

18-Jan :

1) Once again I highlighted the 逃命反弹 (I mentioned again and again)

2) Those who want to buy on rebound, make sure you know when to sell as you

3) Trade what you see and not what you think (I mentioned this so many times)

4) Furthermore, today market is mend for trade (I mentioned this many times too)
5) Do not listen to others

22-Mar & 11-April :

1) Market needs a "change hand" 洗盘. 

2) The first 2 batches big boys were alighting

3) I illustrated by using commando, guards, combat engineer and infantry.

4) Careful, if this 洗盘 failed, then game over.

And yes, the commando and guards have alighted.  The combat engineer took over the task to build the bridge across so that the infantry can cross over.  But they failed.   

Let's look at the recent market leader - Taiwan market which was one the hardest hit on this sell down.  The second leader and also one of the hardest hit market - STI. 

Taiwan charting.  The chart tells me that the recent free fall came not only from the combat engineer but also the infantry which was the retail traders.  And not only fear, they were panic too.  When they saw the sell down, they were probably worried and panic about the curse of "sell in May and go away". 

What I will be watching right now is the blue wave which represent investors.  If this group starts to sell and go into fear or worst panic mood, this is where the market is going to be ........  Secondly, I will be watching closely on the US market.  On the other hand, I will be watching for any potential turning signal whenever it come to support level.

STI, same the Taiwan market.  Combat engineer failed to lay the bridge across.....panic sell down by the retail traders.  Things to look out for - action from investors and the US market.  Flip side, look for signal at the support level.   

Now, let's look at the Europe market - DAX.  It filled the important magnet 9700 gap.   It halted for the time mean.  If it continue to fall, I will be watching at 9500, 8967 to 9125 gap and 8700 support for any potential rebound signal.  On the down fall, I will be watching closely on the US market.

Now, our big brother US market.  Let's pull out the DOW charting.  DOW faced pressure whenever it come close to 18350 peak.  The rainbow wave is squeezing.  How long it can stay inside there?  Will it rebound or will it break through the last section, blue wave.  We may have a answer soon.

Top side, we know pressure.  What about if it break down?  US election year, will FED save the market?  They will not.  FED will only save the market when.......  Look at the chart and see yourself, when the market came down fiercely, where it hit and rebounded?  How many times that happened?  That area is a super important support level.  Remember that.

Knowing and respecting the big brother.  When they sneeze everyone feels the chill.  Boiling the "ba ku teh" soup continues.  How the soup and "ba ku" are going taste and look like, you figure out.  温水煮青蛙, market is squeezing you piece by piece. 

You trade what you see and not what you think.  Don't listen to others.  Don't listen to what others said oh today down because of Japan, tomorrow market down because of China......next day up because the non-farm number was........down because China import number........ Don't follow to swing with all those stupid news and rumours.  Don't follow and dance too much with those numbers. 

Today market is mend for trade.  Do your own homework.  Learn how to see market differently from the majority.  Learn to understand and recognise when and which piece of info and economic data really come into play.