We've eaten enough time now that I'm questioning whether McHugh's 3/1 phi mate turn will be a top after all. On the chart, with a 3-week wave 4, it would make a very nice bottom. For a while now, Dr. McHugh's phi mate turns have marked numerous bottoms, including the last one on 12/31.
In social mood terms, we will probably start worrying about the debt ceiling soon, and the hard numbers under the economy like the upcoming Durables number that will include the ruinous Boeing sales. So we are set up to work our way downward, just like in late December.
And just like December, Congress can work something out on the eve of the 3/1 sequester. What I'm proposing here, though, is that the relief rally off that is still constrained by the bearish wedge, that on a second visit to it (assuming we don't blow it up Sunday night), results in a hard reaction off it.
The first important low would be SPX 1330 or so into the May 1st FOMC.
I didn't realize that Charlie Manson had made a tribute to the Fed's balance sheet. A classic.