As most of my readers know, my proclivities toward the stock market tend to be quite bearish of late.
While my longer term outlook remains bearish, I wonder if we now see an Inverse Head & Shoulders Pattern in the S&P 500?
If my analysis is correct, and that is rather doubtful, we could see a rally extending as high as 1200 or even 1220 over the next month. Increasing trading volumes as the market edges higher would confirm this outlook.
Perhaps the market is anticipating QEII and this is driving stocks higher.
If so, my estimate is that once the peak is reached, at around 1200, and a double top is formed, we will see stocks grind lower, as the November mid terms approach and Washington soon becomes gridlocked over the rising deficit.
While my longer term outlook remains bearish, I wonder if we now see an Inverse Head & Shoulders Pattern in the S&P 500?
If my analysis is correct, and that is rather doubtful, we could see a rally extending as high as 1200 or even 1220 over the next month. Increasing trading volumes as the market edges higher would confirm this outlook.
Perhaps the market is anticipating QEII and this is driving stocks higher.
If so, my estimate is that once the peak is reached, at around 1200, and a double top is formed, we will see stocks grind lower, as the November mid terms approach and Washington soon becomes gridlocked over the rising deficit.
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