Thursday, December 6, 2012

Charts 12-06: Danger ...

Days like this are frustrating, until you zoom out and see that we are still fighting over that old trendline up from 1074.

There's an outside chance that a nasty-bad post-election NFP report tomorrow, plus all the tension building up from the fiscal cliff haggling, plus the loss of this trendline, plus AAPL in its own third wave down, could really blow us up tomorrow and all through next week.  The target would be a wave of 1.618x magnitude of what I've been counting as a wave 1 down from 1464, reaching the SPX 1215 area by the end of next week.  VIX would be in the 30s.

It would echo the drop in early August of 2011.  If we get it, and the 1165 low in January, it speeds up the schedule for 2013 dramatically.  We could see the dominoes fall as early as Spring.

Just thought I would mention it.



sooner said...

So, what are the chances that congress and the Pres reach an agreement on the fiscal cliff, and stocks crash anyway ala TARP?

sooner said... is back up