Thomas Bulkowski of the pattern site thinks the DJIA could be close to entering a 2 year correction starting pretty soon. It is a nice post and lays out a few arguments why this may be the case. After that he says the market could take a shot at the old highs.
In general I agree with him. We are getting close to the time for an extended correction. Whether or not it will be two years long is unknown to me. I was thinking earlier that it could be maybe 6 to 8 months long. Either way a sideways to down correction like that would go a long way towards working off the overbought condition of the market and help build cause for the next move.
In other news I am keeping an eye on SQNM Sequenom. It appears to have a nice ascending triangle and might get some kind of run going next week. But on the other hand looking at the history of the stock the ascending triangles have not proven all that reliable and it is worth noting that SQNM is a biotech stock and has shown some very wild and scattered price action in recent years.
So I am skeptical of SQNM but I am keeping an eye on it on the slight chance that it actually behaves well and gets some kind of move out of this pattern. If SQNM does not get moving quickly either Monday or Tuesday, then I suspect something is wrong with this setup and it is a no go.