Tuesday, September 6, 2011

Bear Flag Pattern

September is starting off just like August did. Ugly! The charts are showing a bear flag pattern. Which the name implies, look for more down side or more sideways consolidation from 10,750 to 11,750 range. Thats a big range! We have open gaps at 10725 and at 11900. If we do break down below 10,400 then look for next support at 9700, which is the 50% Fibbonanci Retracement from the 3/2009 low. The monthly s1 pivot is at 10,700 and monthly s2 is at 9800. Monthly r1 is at 12,400 for you perma bulls. I still believe we have started a new bear market, and that it will be ugly for a few years.