X, did you see Favors on CNBC late yesterday? He was talking about a "top-to-top" analysis that he thinks may be applicable now. I didn't follow everything he explained as I am not a technician (perhaps someone here who follows Favors can shed more light on it), but the pattern he saw is one that he said usually precedes a major sell-off, giving four prior examples. '38 was one and I think '87 another, but I can't remember the others.
Anyway, he said that if the Dow can not take out the May 13 high, invalidating the pattern (I'm not sure of the time frame in which this would need to happen, but I assume that if we take out this weeks low first, his pattern is intact), then ... well, you know how technicians talk. Nothing is certain until it's already happened. Let's just say his prior predictions of more upside this summer (what's his target, 9600?) go out the window.
Hope that helped more than it confused. Anyone who listened more closely or follows Favors want to take over?
Bob
PS: Sorry, if someone else already reported Favors' comments from yesterday, but when I signed on today, there were forty some posts and I haven't read them yet. |
