RE: Any thouights??I've been looking for a triple bottom pattern to form for FAZ over the last 3 days. We got the 3rd bottom right at the end of trading today so tomorrow we could get confirmation on that pattern. So far, so good.
I favour a gap down for the mkts tomorrow and no looking back. I go mainly with chart patterns, a model I have developed and my time pivot calcs. News to me is secondary after technicals.
There is a ton of news to be digested by the mkts tomorrow though so it promises to be an interesting day. GS, BP, GOOG, Financial Reg. Reform. BofA, Citi, and GE are all reporting before the open as well. BofA traded very poorly today so if that comes in weak, then that could override the GS. GS also hitting a ton of resistance here. I think a big catalyst to drop the mkts will come from an unexpected source. Apple, gold, GOOG for that matter are all things I'm wathcing here. I generally expect a steady drop for 3-4 weeks, but a more serious crash is also possible under the cicumstances.
There are many bears expecting a drop here. A crowd on the same side should always make one cautious. However, my theory is that most bears are looking for 950 or so. I like 820 in the short term or in the case of a crash around 600 so I think most bears will be wrong here on the size of the drop.
I'm seeing a lot on the technical side to indicate that the mkts have already topped. We'll see....
SC