Monday, August 23, 2010
The Comp is trading within its downside trading channel and has build a price pattern one could claim as a head and shoulder pattern with the neckline around 2160. Indeed we have some support in the 2150-60 area and need to break below to gain downside momentum. So far neither a war scenario nor a so called double dip has been priced in or good forbid that we are heading for depression. Ironically we will likely see the adverse effect as the FED and DC will rush to dumb more worthless Dollars on the market to create the deception that things are turning although obviously they do not. Coming back to the technical picture it looks like we will break to the down side and make a quick and dirty sell off down to 2000 before manipulators will trigger another rally fake out. The sell off has to happen within the next 2 weeks actually we can say we need the break to the downside this week otherwise a more complicated price pattern may show.
Posted by getagrip at 4:39 AM