Princess Gwen here, watching conditions atop Mount Nasdaq. All Princesses love skiing, but even a Princess knows not to go out when there's an Avalanche warning.
Nobody can predict when an avalanche will happen, only when the conditions are right, and boy does this thing look like it wants to break down. A confirmed breakdown from a huge wedge that has been shaping up since January, with an extra, bonus head-and-shoulders pattern contained within the wedge, whose right shoulder is the breakdown of the wedge. If it had broken up out of the wedge, I would have been able to say it was technically bullish, but breaking down like it did makes a pretty great bear case. The head and shoulders breakdown would give it an expected drop of around 600 points, to 7000-ish.
However, if a drop like that happens, I'd say we're open for Bear season. There's no telling what happens after a confirmed breakdown of this market. I've been saying that this market's timing parallels 2008 a great deal, and if so we're right in the target time of when I expected everything to happen. There's so much potential here, we'll see how it goes.
Nobody can predict when an avalanche will happen, only when the conditions are right, and boy does this thing look like it wants to break down. A confirmed breakdown from a huge wedge that has been shaping up since January, with an extra, bonus head-and-shoulders pattern contained within the wedge, whose right shoulder is the breakdown of the wedge. If it had broken up out of the wedge, I would have been able to say it was technically bullish, but breaking down like it did makes a pretty great bear case. The head and shoulders breakdown would give it an expected drop of around 600 points, to 7000-ish.
However, if a drop like that happens, I'd say we're open for Bear season. There's no telling what happens after a confirmed breakdown of this market. I've been saying that this market's timing parallels 2008 a great deal, and if so we're right in the target time of when I expected everything to happen. There's so much potential here, we'll see how it goes.
Comment:
Price just tested the wedge and was rejected. Support became resistance. Sooo bearish.