Welllll, not today, but we're geeeeetting close!!
A couple of days ago I was talking to Berney and told him about a "bump and run" pattern on OEX and when I looked it up in the book by Bulkowski, it says that 69% of the time a break to the downside results in between a 15 and 20% correction.
Since Bulkowski was talking about the pattern as a topping pattern, and clearly this is not the top (to say the least) I am not sure that this is the proper interpretation. But this translates OEX down into the 620-630 area. A few days ago I didn't believe (from a subjective opinion point of view) that we would break 640, because a couple of years ago it was kind of a magic support area. Well now I believe we can!
The other observation I would make is that trend support on the DOW is about 10499. Break that and you (IMHO) break a diamond pattern that translates = down!
Thirdly, the RUT is goin' south!
Four, as The Don would say there is an "imperfect" three black crow formation on OEX implying further negativity.
FMAGX closed at $113.10 a new low.
Gersh says 3/2, boy that is looking better and better!
I know its early to start looking at the futures, but they are, needless to say, Negative with a capital N.
Finally, with the CPI this morning showing a rise in the inflation rate, Big Al is between a rock and a hard place!
As Berney would say "this is gonna be verrrry interesting"! ggg
CU
Paul Kellam |
