Perfect crash pattern which matches the mid 2007 pullback, the flash crash, the 1987 crash, and more... The market still need around a month more of low volume drift up to fully set up for a massive crash. Rally volume levels, VIX, and sentiment levels are all pushing toward full confirmation of a potential 300-500 point market drop into fall/winter. Just realized this today. Hadn't noticed how we have perfectly aligned dual double up cycles forming until today... It's very rare to have a perfect weekly/monthly pattern alignment like this! Best case scenario for the bulls is that something breaks the market down into a correction soon so that a full blown crash can be prevented. Blog post: "Just wanted to alert everyone that we are going into a perfectly formed crash pattern. The exact same pattern that ended in the crash of 1987, the mid 2007 pullback, the flash crash, and more⦠Both the weekly and monthly chartâs cycles are forming the exact same pattern. I have thought up a few different names for this pattern as I see them a lot⦠The ârip reversalâ, the âdouble stacked rallyâ, or the âparabolic last gaspâ⦠The longer the market drifts higher without removing the weak hands the more violent this market will break when a news catalyst hits. This one is also very dangerous because of the extremely low VIX, long term momentum levels, high complacency levels, and totally nonexistent volume. Everything checks out. Itâs just a caution for now, but if we continue to drift upward toward September a full blown crash becomes extremely likely. Donât worry yourself too much⦠The bottom line is⦠When the market breaks range or has a weekly/monthly engulfing reversal⦠DO NOT try to buy dips⦠Short trades only until it drops for a month or so, and then you can get some proper momentum readings at that point."
This is the most perfect crash double compression pattern since 1987... Full confirmation of this current pattern occurs once we push into new bull market highs. Ignore the labels on this chart, they are for the current market pattern.
Did you realize: as long as AAPL hold, pattern means nothing ? And hold AAPL at this level is not hard job as huge profit on AAPL already made.
You could not predict the downside this week with your trivial 3/5 day up/down pattern crap what makes you think you can call major market turns now. This is a bull market, and there are so many disbelievers now that, that it is nowhere near a top, when everyone, including you, begin to say this thing is insanely bullish, then perhaps, a top forms
The DJIA is soon running into resistance from the 2008 high. Does it have the steam to break through? Maybe not.
Were very low on fuel with VIX being this low, but don't get too hasty with your shorts yet. There are a lot of hedge funds and big players not in this market. If Ben Bernanke announces a new easing program at the end of the month they may all get sucked in and then we will be set up for a mega-crash... In 2006-2007 we managed to drift quite a while with VERY low vix before the market cracked during those rallies. Just follow the technicals.