Everyone is looking at the Head and Shoulders pattern that has formed on the hourlies. It is fairly clear and would support the 1-2 count I have posted. However both the stochs and the rsi say that the market is currently oversold. Could that have been the P2 peak marked above? We will find out this week...maybe even tomorrow.
The stochs has spent 3 of the last 4 days outside the BB area. Still the VIX is in a downward trend. A move above 30 will be a big fat warning sign of things to come.
BPSPX:CPC has curled over and has even touched the 50ma. Looks like a good time to short.
Bonds look like they have formed a clear ABC. Of course C could technically be a little higher.For now the market should be down for the intermediate term...after all its sell in MAY and go away :)
