Here we are back where we finished May, when I wrote on May 31st's "Friday Finale – Final Chance to Go Away in May":
What a great rally it's been.
Thank you all for playing – have a nice Summer, be sure to come back for our Santa Claus Classic run in November…
Big Chart – I don't like that pattern one bit. That's a spitting cobra pattern and usually they strike to the downside (and, before you ask, yes – I made that up). Still, very logical for the M to form down to the 50 dmas – especially as those 50s are right on major lines for the S&P, NYSE and the RUT and we know the Dow is too silly to worry about and the Nas is ruled by 10 stocks and 5 of them are AAPL so they also give funny readings but the 3 that are broad and hard to control are all lining up perfectly for a 2.5% drop.
We fell 2.5%, bounce back and then fell 6.5% over the next month into June 21st when the chart looked like this after the Fed and I said:
The total drop is right about 4% and 4% is the line at which a 5% move should bounce back to (about 1,584 on the S&P from 1,650) and that was right at the low of the day, just before the close. That's what caused us, at 3:05 pm in our Member Chat, to
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