SPDR S&P 500 (SPY)

[Two-timer]

Gleno, and to add a little more confusion to the game, McHugh thinks there might be one more sharp rally before the big decline. He might be right(?). Two

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What is more concerning, is the progress of the Rising Bearish Wedge pattern in the NASDAQ 100. The bottom boundary stopped the decline Wednesday, so now this pattern has five touch points on the upper boundary and four touch points on the bottom boundary. That is an impressive number of trend turns off these converging trend lines, and adds power to the pattern, more reliability. What is left for this pattern to complete is one more sharp rally leg, perhaps to the 1,800 level +/-. Then, a catastrophic decline should start, wave 3 down in the NDX, and wave (C ) down in the blue chip indices. The downside target of this pattern is its starting point, which in this case is 1,050, about 40 percent below Wednesday's close. Prices could fall even lower, below the starting point of this pattern. What is happening here is that buying is being met with stronger and stronger selling as prices edge higher. Once prices fall below the bottom boundary, a trend reversal is suggested. We are about to start the month of October, which has often seen major tops and the start of major plunges. Maybe again.