Based on my read of the tape today, the still valid Bearish Gartley Butterfly Pattern in the XLF ETF and a mix of other important factors such as market breadth, I have to conclude that the near term state of the market is very bearish outlook. I think we are building up to a scenario … Read more
The market as represented by the major indices has not been able to make new significant upward ground in recent days. Essentially the indices have been flat the last 5 days. This flat sideways market action is occurring at the same level as the ‘twin peaks’ of July 2011. It could be that the market … Read more
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The Bearish Gartley Butterfly pattern that I posted previously on the XLF ETF is looking like it is starting to work and we may be seeing the ‘fruits’ of that bearish pattern right now. The early market action now is in rejection mode and we could see downside follow through into end of this week … Read more
The GLD ETF and the gold price are at a key juncture now. Note in the chart below that we see that the GLD has previously completed a bullish gartley butterfly pattern. The GLD promptly blasted higher the day after this bullish gartley pattern was completed. This is important because the size of the bullish … Read more
In the markets, the long term trumps everything else. The longest term time frames hold precedence over all other time frames. They move slower than a snails pace and are very slow to change direction once a direction is chosen. The extended market decline from 2007 to 2009 has caused many market timers to repeatedly … Read more
The XLF Financials ETF is currently showing a possible gartley butterfly sell pattern. If the pattern is valid then we should begin to see very soon a sell off in the XLF Financials ETF. The pattern and its bearish implications will not work if we start to see the XLF trade higher than 14.74. As … Read more
The sp500 is currently trading in the form of a double inside month pattern. This is only the second time this pattern has shown itself since 1980. It could suggest a huge move either up or down as we move into 2012.
The sp500 and stock market is at risk for a more serious break down into end of year and early January 2012. The market tape action must start to firm up very soon to save a chance for a continued up trend.
SPY Technical Analysis now suggests that the sp500 and broad market are in a continued bull mode for the intermediate future. Today’s price action was historic and an important turning point signal for equity markets.