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This Chart has Very Serious ConnotationsBrian Bloom
Theory says that if a rising wedge formation should break down, the price will, at least, move all the way back to the point at which the wedge commenced. Because of the precarious situation with the debt mountain, there is a high possibility, in my mind, that the $SPX could penetrate below its low point. If it does, we will likely see another Primary Down Leg which, at the same time, will almost certainly violate the 50% principle. The first warning signal will be volume related. If volume rises tomorrow on falling prices, this will be a sign of selling pressure. If selling pressure emerges at this vulnerable point, the consequences will be very serious. One clue is as follows: As at writing hereof, the $SPX was down 2.7% and the DJIA ($INDU) was down only 1.9%. Let's see if there is a last minute rescue operation mounted at close of play. Brian Bloom
Beyond Neanderthal Via the medium of its light hearted storyline, it examines how the world has gotten itself into the horrific quagmire of economic and social problems with which we are now faced - and puts forward one possible course of action on which we might embark to dig ourselves out. It may be ordered over the internet via www.beyondneanderthal.com. Or purchased from Amazon. 321gold Ltd |
