The Top?

As we discussed last week, the Street needs a big, positive close at the end of the year.  It’s great publicity, boosts bonuses and gives banks an opportunity to offload some of the crap still on the books. It presents a quandary, as numerous reversal signals have been generated by harmonic and chart patterns.  What’s … continue reading →

Anticipation

The Eminis are (hopefully) about to bag their own Butterfly Pattern.  It’s been an obviously “managed” march higher, with very few wiggles in either direction — not exactly the sort of market one encounters “in the wild.” SPX, which reached its own 1.272 last Friday, is closing in on a little Crab Pattern just for … continue reading →

Correction Warning

Harmonic Patterns aren’t perfect. But, when this many of them line up, all screaming the same warning, it makes sense to pay attention. In no particular order… SPX has completed a large Butterfly Pattern. DJIA has completed a large Butterfly Pattern and tagged the channel top that connected the 2000 and 2007 tops. RUT has … continue reading →

End Games

Don’t look now, but the Butterfly Pattern generated by the drop from 1576 in October 2007 to 666 in March 2009 is a handful of points from completing.  We’ve discussed this target for over a year [see: The World According to Ben.] It’s hard to believe it’s finally here. Will we get a 1973-style response … continue reading →

Bye-Bye Ben

Finally, the day we’ve all been waiting for.  Will they or won’t they?  Who knows?  But, it’s pretty clear, from watching the talking heads over the past few days, what the script is:  bring on the taper, but paint it as a non-event because the economy is strong enough to take it. We can argue … continue reading →