Tuesday, August 2, 2011

It is bad, very bad










At the close of Tuesday trading, Dow, Nasdaq and S&P 500 dropped 2.2%, 2.7% and 2.5% respectively. The bad thing is, both Dow and S&P have broken their respective neckline of their 'Head and Shoulders' or 'Triple Tops' formation. I believe nasdaq will follow them very soon. Unless the prices can move strongly to above the necklines again in the next few days, a major reversal pattern has finally formed. Major wave C has started.






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