Fan Line C to the bears' rescue!
I count that as five rallies stopped in their tracks (Aug 9, 10, 19, 22 and 23.)
Not bad, Line C, not bad at all.
UPDATE: 11:45 AM
And a counterpoint, an IH&S pattern on SPX completing at 1143. It has potential to 1161. If it plays out, it would certainly gussy up the Big Ugly pattern, evening up the shoulders very nicely.
If this rally extends as a result, it might end up looking something like this:
Note the 1161 target coincides pretty well with a 1.272 extension of a larger potential Butterfly pattern.
UPDATE: 11:15 AM
An update on Big Ugly -- the larger H&S pattern we've been watching. It has bearish potential to 1032.
UPDATE: 10:40 AM
Little Gartley setting up on the 5-minute chart. Should reverse at the .786 retrace at 1140ish.
UPDATE: 10:00 AM
US new housing sales continue to tumble, coming in at 298,000 versus expectations of 310,000. June was revised down from 312K to 300K, so don't be surprised if July's aren't similarly adjusted.
And, a reminder, these figures were for the calendar month, meaning the full impact of the stock market slide won't be felt until next month.
And, from the Eurozone, an update on German economic conditions/expectations from the Center for European Economic Research. Pretty dismal readings.
The view from there is that the German economy is sliding. Those who ranked the German economic situation as "good" fell from from 90% to 57%. The Eurozone "good" rating fell from 13% to 6%, while "bad" leaped from 10% to 25%.
And, what do they think of the good ol' USA? "Bad" grew from 40% to 58%, with "good" sliding to an absolutely horrid 1.1%. According to news reports, the McGraw-Hill board is preparing pink slips for the survey participants.
ORIGINAL POST: 2:00 AM
Perhaps it's the S&P news, but the futures are making another bull run tonight -- currently up 11 to 1134. A note of caution: at 1140 there's a potential inverse head & shoulder pattern that would complete. If it plays out, it's got upside potential to 1180 or so.
Why do I always preface these predictions with "if it plays out?" Because none of these indicators are foolproof. They're all subject to being overtaken by important events, politics, fed action. Think Fukushima, QEn, etc.
Here's a H&S pattern on the eminis that didn't play out, just this morning.
It was just as well-formed, and had nice downside potential to 1092. This evening's runup to 1134 might negate it, since the right shoulder has been exceeded. Or, has it?