Thursday, February 16, 2012

S&P Weekly Chart Scenarios

 We have a great butterfly pattern that indicates that the uptrend could reverse around 1380.

Another perspective would be that the current leg up is forming a B wave of a flat!!!
A lot of people think that we are in a new multi-year uptrend, but we might be in for a powerful leg down that would surprise everyone. If the flat scenario occurs, I would suspect that S&P's minimum target would be 1020/1030 level.

Just be aware that those are just possibilities. Markets change every minute of the day, so we need to adjust our view constantly.
Those are valid patterns, but nothing is set in stone until we have a reversal confirmation, so DO NOT  act on still only potential developments. If we get a reversal we will have about 3-5 months of selling so I do not see any reason to jump in a short trade in advance.

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