The first is, the market is so jacked-up here that we actually could have TWO 2008-style episodes ahead of us. I had sketched out yesterday how a Fall 2014 could break down a few chart supports and return us to the starting point of SPX 1040 this fall. The magnitude of such a move is comparable to the entire 2008 cycle.
After the crash, we still have time and room to retrace and crash again! Maybe a giant zig-zag to finish the Jaws of Death:
|SPX twin-crashes concept car|
OX finally fixed their historical DJIA chart data, so I can now do a long-term log chart of the Jaws of Death, like so.
|DJIA Jaws of Death, log scale|
Remember, each leg of this monster is a three-wave sequence. In Bulkowski we trust!
Here's the VIX, a few trendlines pointing to 5/20 and a sub-12 VIX.
That's it. I'll post some bubble RE pix over the weekend. While I was away in the Arizona, I think I may have found this cycle's Queen Creek. No, really.