SPDR S&P 500 (SPY)

[Two-timer]

Hey, you, here's McHugh's latest market summary. He's pessimistic, but also holds out for a little more upside during the next few weeks? Gurus can drive you crazy. What's you take? Two

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Stocks are down sharply mid-day Tuesday, as Monday's 30 and 60 minute Full Stochastics suggested was likely, the Industrials losing 100 points, the S&P 500 off 11, and the NASDAQ down 21. We are watching the Rising Bearish Wedges in the major U.S. averages and they are not far from completion. Downside targets from these patterns are the March 2009 lows, which means a return to the lows for this Bear Market from 2007 is likely. Larger Bearish Head & Shoulders patterns warn that if we drop below those March 2009 lows, prices could head toward zero. Not all at once, but slowly and relentlessly like occurred in the early 1930's. Timing allows for a bit more rally over the next few weeks. However, we are in truncation territory where this particular Bearish pattern can either see prices give one last throw over spike above the converging upper boundary, or can truncate, meaning fail to reach the top boundary and plunge.