CPI/JOBS Blow a Hole in support - CRUSHED? Cycle Pattern Update

If you were watching the markets this morning or were caught unprepared for the huge CPI numbers (which lag), you were probably sweating bullets watching the NQ fall 400+ points in just a few minutes.

These reactionary types of price swings can be very dangerous for some traders - especially right now.

But, I want to alert you that the NQ has rallied nearly 200+ points off the morning lows and may turn positive by the close of trading on Friday.

Do any of you remember my Cycle Patterns? Take a look at 10-13 (CRUSH).

10-10: N/A
10-11: Inside/Breakaway
10-12: Harami/Inside
10-13: CRUSH
10-14: Gap Potential

I think the Gap Potential for tomorrow may reflect an upward price gap and may surprise traders if this support level holds.

Next week looks very interesting...

10-17: BreakAway
10-18: Carryover
10-19: Temporary Bottom
10-20: Top/Reisistance
10-21: Consolidation

I see quite a bit of volatility over the next 10+ days while Earnings and the Fed play central roles in driving price trends.

I'm still cautiously optimistic that we'll transition into a Christmas Rally phase throughout most of October. Watch for the US markets to try to setup a base/bottom over the next 4+ weeks.

If the market recovers from this morning's lows - lookout. That should be a fairly clear sign the US markets are defending this support level with a vengeance. Damn the Fed!