Friday, December 14, 2012

Charts 12-14: Another day of this

A little more grinding down, a little more sideways, a little higher VIX, still looking for SPX 1405 for a bottom here.

If we rally hard into EOY, how will we reverse course and begin heading down?  Maybe after the initial euphoria of a "fiscal cliff" deal (all based on CBO models) has set in, the grim math of reality will be obvious to everyone, perhaps even the credit rating agencies.

SPX 12-14

Oh, what the hell, why not ...



Permabear Doomster said...

A terrifying second chart.

So, you're assuming some fiscal cliff agreement, and the market will ramp 6% across 3-5 days...

hmm, I suppose its possible, and I do understand why you are considering it.

We've seen some crazy ramps over the last few years.

christiangustafson said...

It's my interpretation of McHugh's continuing point that we still have one last higher high left in the tank, to complete the mega pattern Jaws of Death that started in 2000.

He's not saying that this finishes EOM, however. I have a pink trend line for a larger rally wedge at 1500 then. I think it would be a helluva way to end all of this.

The fiscal cliff can probably be delayed with some new nonsense.