ReviewMy big picture model from the summer worked very well and completed the major moves. It shows an incredibly bearish big picture going forward. I didn't have the short term picture right in early Dec, but upon close review, I noticed the ending diagonal finishing pattern. It did play out and $rifin/FAS hit the upside target. It is complete. So where does that leave us?
Well I think the mkt has topped and the trend has already changed to down at the Jan 5 pivot point. I have said we are "ready" but notice I am not using the "C" word just yet. I know it's going to happen, and have known for a long time. I will reserve that for the last moment. I'll try to provide warning a little beforehand, but really which day is trivial. The big turn will likely show overnight so it will be tricky. FAZ gapped down from $9.40. Possibly FAZ could get the island reversal and gap back up.
We are now in the micro finishing pattern. We can jostle around a bit with some chop, but we are down to which day will the bottom fall out? One of the most common patterns is a small triangle, and so that is what I will watch for. There are some signs of the triangle and they can take a few days.
The big turn will likely show overnight so it will be tricky. FAZ gapped down from the $9.40, possibly we could get the island reversal and gap back up.
SC