Thursday, December 11, 2008

Wedge breaking time...

New baby...not much sleep...and also not much has been happening in the market this week till today. Just a lot of consolidation and churning. Today the market picked a direction. With the BoA job cuts, Madoff's ponzi scheme, and a potential failed bale out vote tomorrow could be interesting as we approach the bottom of the rising wedge. Note the bottom line on the wedge is the bottom trend line of the bull channel. If we break that and stay below, the bulls have lost this round and we should continue down.
A great shorting opportunity is coming up. If we pierce that trendline we will still be in 75% trendline for the bear channel...and my guess is we test the lows.