Click for a larger image
This is something I've been wondering/observing about for the last few weeks. Is the market forming a head and shoulders top? As the chart shows, there's a pretty clear left shoulder and head on the chart now. All we need is the right side.
If you think about it, this patter would make a bit of sense right now. We're had a really strong rally and are now topping. However the market is also waiting to see if the forthcoming economic news is strong enough to warrant a further move higher. Hence we get a sideways market which would fit in with the head and shoulders pattern.
1 comments:
The market has priced in Recovery. When it fails to materialize, look out below.
I heard CNBC talking about how many of the advocates of a V-shaped recovery are starting to waiver in their faith. They are moving to a more U-shaped doctrine.
What will it take -- and long will it take -- to convince them that we are already on the right side of an L, at best?
Post a Comment