What Can Possibly Go Wrong? (Part 2)

When I wrote what is now Part 1 (see prior post earlier today), this is what I was seeing heading into today's session.

Well, needless to say, the answer to "What Can Possibly Go Wrong?" occurred several hours later.

After cracking new all-time highs (yet again), the Nasdaq 100 (NDX) quickly turned south and ended up being down 100 points at the peak of it's watershed moment, causing nearly 150 points worth of intraday action. The market seems to relentlessly float up and away day after day until the rug finally gets pulled (see June for more examples).

The question now is, will we get any follow-through? I wouldn't doubt it; in fact, I still believe we'll see the bottom of that megaphone pattern tested (and likely broken); hell, we already got a 1/3 of the way there today alone.

The more important question is, will we see any immediate follow-through? Amazon (AMZN) missing earnings after the close today surely won't help. However, judging by previous action, I'd say we can easily lose today's low early in the morning, but will likely close above today's close by the end of tomorrow. If we don't, this market could be in for some serious trouble next week. Hard to believe, but as I alluded to in an earlier post, we all know it'll eventually happen (broken clock finally being right and all).

However, I don't believe it's going to be an easy ride for the Bears, even though I do believe the ultimate target (5400 gap fill) will be hit over August/September, there will likely be a lot of back and forth action as it fights it's way down... of course, who knows, maybe we'll get that move in a single day or two. It'd certainly turn what was otherwise a "watching paint dry" type of year into some real fireworks.