Bears have been amply rewarded by the large H&S; pattern that completed in early August. The new ones now shaping up will make that one look puny by comparison.
Pure speculation, but if the H&S; and Butterfly patterns play out on the daily chart [The Big Picture] we would complete a larger H&S; pattern. The initial target would be 820, but along the way we’d create a new neckline indicating 743. Seen here on the weekly chart…
Also, note how clearly the wave count is laid out on the weekly RSI.
Great answer…even if you're half right. We'll see.
Ahhh… spoken like someone with expiring puts. Me, too.
If the next leg down is a wave 3 of 5 of 1 down, it should be more aggressive than 1 of 5 — which fell 90 points in 3 tdg days (9/1 – 9/6).
I'm looking for 135 more points total, and I'm betting that most of that move occurs by next Friday.
So where will the S&P; be (approx) this time next week ?
Thanks, I'll check it out.
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http://financeitguy.blogspot.com/