Stock Market Crash Phase Starts Today
Stock-Markets / Financial Crash Dec 16, 2011 - 12:19 PM GMT
You may recall yesterday when I identified the triangle in the 10 min. SPX chart. I also mentioned that its target was 1231.00 and that it would either meet its target by the end of the day on Thursday or in the first hour on Friday. My calculation was off slightly… the pattern was over at 10:22 AM Eastern time.
This maneuver was a slick way for the house to avoid paying on 21,368 put contracts with a strike price of 1225.00. Nothing. Nada.
It almost makes you want to wish for someone to yell fire in a crowded theater.
Having said that, we are now entering the crash phase of the cycle. We can easily see 200 to 300 points taken off the S&P in the next week. This is not a place to hang around for any favors from Mr. Bernanke. Instead, the Grinch is coming to town,
FXE is also ready to plunge into its crash phase. It should hit its Head and Shoulders minimum target by the end of next week.
This pattern has a long way to go and the initial head shoulders target appears to be simply wave (i) of three. By March we should see the collapse of the Euro.
The bounce in GLD has become entangled with cycle bottom resistance at 154.29. In other words, the retracement will fail and GLD will also enter its crash phase. The next few days should be brutal for the price of gold/GLD. I'm expecting the head and shoulders target of 128.68 to the achieved by midweek.
Good luck and good trading!
Regards,
Tony
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