I’ve spent more hours looking at, diagramming and studying the S&P charts over the past month than what and sane human should do over the course of a lifetime. And after another round of spending an ungodly amount of time on it, I discovered an interesting channel that the S&P was trading in, and if this plays out as stocks typically do in this type of pattern, we could see the S&P well below 1000 in no time.
Then you also have the head and shoulders pattern which isn’t dead yet by no means, in fact, the surprise rejection at 1130 made its case all the more stronger. So, what has gone from being an impressive rally off the July lows, and had everyone thinking good times were back, has suddenly grown much, much dimmer.
