Wednesday, December 19, 2012
This may be the last chance the bulls have to move through this resistance and achieve that target.
Can you see the Bearish set up?
The bottom of a really big wedge was broken. Then the Bulls tryed to pull it back, but look at what has happened. The bottom of the wedge has held.
Now I have drawn a new fork which I'd like you to keep on your charts. The CYAN fork is a very bearish fork. The candlesticks are currently holding out for a confirmation to sell, and if that should happen then the bottom tine of the upward Green Fork will be tested,
As I've said before and have had drawn on my charts for a long time now (reference the large rectangle). 1396 will be critical. 1382 is the bottom of the that rectangle. This should probably be changed to 1376 but you get the idea. The top and bottom are supports. Once they go then so goes the market.
As you know I'm not a believer (yet) in the Mayan calendar worry that has been going on for quite a long time. But I drew a red time line on 12/21/2012. It's just for grins, but it does have a lot of potential for a really big down day which could test those support levels I just mentioned.
Now just to tie this story all together... You should also have the WHITE fork on your charts. Look at the bottom tine. Where are we looking for support if 1396 fails to hold? Is it just a coinkidink?
I drew this fork on the Euro about a year ago. I'm eager to see what happens.
Posted by Robert Campbell at 18:34