We came with in 0.15 points of the 61.8% retrace of minute [i]. That point looks to me like the end of Minute[ii]. The rest of the day traced out various wedges on extremely light volume, but never exceeded that high. The impulsive drop after the peak looked like it could be the first 1 of 1 of minute [iii].
The dailies have drawn out a classic bear flag, with decreasing volume. This signals a strong impending drop.
BPSPX is screaming sell still (above 70 with a 6 point drop is a strong sell signal). BPSPX:CPC actually headed down today as the market was heading up. This is yet another negative divergence pointing to a strong move down next week.
My last entry focused on the fact that the VIX had not made it to the midline of the BB channel. Today it has, and with that mark made I believe it will start spiking up again.In conclusion, everything points to a down Monday. As of tonight we only had 5 banks fail today. 10.2% unemployment and we rally? Consumer credit is shrinking at a dramatic rate and we rally? Next week is going to scare the pants off of anyone that is a bull.
Feel free to comment...slow weekend so I will be around :)
