[$COMPX] update

The backlink model expected a rapid breakdown of the lower rail but when that happened it rebounded as if it hit an electric fence.  I think someone is seeing these breakdowns and then intervening and I would not be surprised to find out in the future that it is the corrupt hand of the federal reserve trying to prop up the Ponzi.  I would not call this a conspiracy theory.  It is in fact what I would be doing if I were them.  In other words, human nature, not some grand dastardly plan. If they can save their Ponzi they will but the fed knows better than to throw too much cash at a stampeding herd.


But if they are in fact doing it then I am not worried about trading predominantly short because they cannot change the course of the herd, they can only perturb the direction a bit and even then only for a limited time.  And the later this game gets, the less their intervention will affect the herd.  The herd is getting worried and the herd is going to head south very soon now.   I have been talking about the notion of a 500 point DOWn day for some time but here we have a nice setup for it.

Once this begins to head down in the AM (after perhaps a small uptick as shown but maybe right from the open) it should pick up speed quickly and traverse the entire width of the triangle within one wave.  This happened in 1 of 3 and the chart headed all the way back to above the upper rail in 2 of 3.  I think that it did this for a reason and that reason is so that 3 of 3 could happen with unstoppable shock and awe.  A rapid break down of those supports tomorrow AM will send a clear and strong message: "buy the dip is over"/"risk off".

If, after turning south in the AM, this does not head down at a very rapid pace, begin to worry that something is wrong with the model.  If this really is a 3rd of 3rd down then there should be no big switchbacks and head faking.  The chart shouldn't hardly take a breath until both rails are taken down.