Even if it makes a new high. Even if this is just Minute [iv] of C.
Did you see that price action? That wasn't some futures manipulated opening. That wasn't some MM-induced jerky move. That was waves of selling and it impulsed hard. People tried to buy "the dips" along the way and got steamrolled. It was a flash of bearish price action. A taste of what is to come.
When the first rally spark upwards from the 666 low ignited, I too thought for a few days that it was a wave 4 rebound. But in my heart, I knew something was amiss.
Today's selloff just had that feel particularly since the whole rise from 1057 to 1080 counted very well as an ending diagonal. No its not a classical ED but the ones that "work" best never are. I left my house at 3:30 and just knew when I came back the market had sold off a whole bunch more. And it had.
The ending diagonal wasn't a "classic" but it fits well enough and the selloff confirms the pattern.
I'll admit I am a permabear but that is only because I have educated myself in whats going on. Read my blogroll links such as Mish's or Dr Housing Bubble or Zero hedge and you too will realize that things are scary out there. I mean scary.
The financial system. The shadow banking system. The economy. Its all a house of cards. And everyone knows it.
Think Benny and Timmy don't know it? Of course they do. They just threw the farm at the whole thing and are hoping something sticks...
They would have been better off just giving everyone cash. Big checks would of kept it going for sure. But do you think their tightfisted greedy ways leaves any scraps for Joe Average?? No! They will own your land, tell you what doctor to see and let you know when the bank is open to get your hard earned money.
Oh yes social mood is turning my friends. Its turning.
Weren't the bears insisting that wave 5 was still to come at the 666 low? Isn't it just a sorry ass state of affairs when the bears, who have fought the disbelief rally all the way up now insist we haven't finished it?
P3 is nothing to be screwing around with.
The bulls flinched today.