Steve's Place

[DeepBlue1]

I've also discovered/charted a 2mth wedge forming in the DIA with a descending top(currently at just about 8600 and a bottom of 8000. It's getting very narrow and IT also helps explain why, inspite of the news/TA/futures that it rallied from just above 8000.

There's also a channel I've plotted in the same time frame with descending tops AND bottoms. The next top on that is around 9100-9200 and the next bottom is around 7600.

Don't know which one will prevail, but I'm pretty sure one of them will tell the tale.

Tomorrow there's INCREDIBLY BAD NEWS coming out of Europe and then on Friday we have the employment report which is also going to be very bad by most accounts.

I just don't believe that the market can withstand that much more bad news without breaking down below 8000.

I'm going to start buying my ultra short etfs as the DOW approaches 8600 today and/or tomorrow.

Have a good work day bud. Hope to talk at ya later.