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Hopefully.

Current chart shows that the SPX has broken important levels. 893 is right here – that will be tested. 872.81 and 877.52 are the next stops with minor support at 893-895. This will crack like tightly stretched paper mache over a barrel.

So the daily head and shoulders pattern suggest lower movement, where it stops nobody knows, but there is a possible opposite inverse head and shoulders pattern brewing on the weekly. If it occurs you will be looking at a massive low in the market.

The reason I say this is that timeframes of charts = greater value of the distance of the move. A head an shoulders pattern on say a 5 minute chart might effect the next few hours, while a daily pattern might be good for a anywhere from 1 day to a few weeks. A weekly pattern could be good for 1week to a few months.

Again, I’m prefacing with the fact that the weekly pattern hasn’t shown itself, but I think that is what will happen a month or two out. So look out until late August or October for this to potentially happen.

I was and remained heavily short. Scrapped up nearly 8% in the RUT short, and 5% in the SPX. I bought SRS yesterday as well as ERY in the morning. I did sell DGP as it had a sell signal, while other gold stocks GRS, GFI, and SA, still held onto long signals.

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