Charts I’m Watching: Jan 8, 2012

We’re getting a little more momentum going on the downside today.  SPX completed the small H&S pattern I posted yesterday.  It targets 1445 — approximately the .146 Fib of the 1266.74 – 1474.51 rally. DX completed its back test of the falling red channel and continues to show strong positive divergence.  The RSI chart shows … continue reading →

Down the Rabbit Hole: Part 2

Alice laughed: “There’s no use trying,” she said; “one can’t believe impossible things.”   “I daresay you haven’t had much practice,” said the Queen. “When I was younger, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.”                                     ― Lewis Carroll, Alice’s Adventures … continue reading →

Down the Rabbit Hole

“In another moment down went Alice after it, never once considering how in the world she was to get out again.” ― Lewis Carroll, Alice’s Adventures in Wonderland Not quite four months ago, the Fed guaranteed lower interest rates and higher stock prices forever.  At least that was the mainstream media’s take on QE3.  The … continue reading →