Today we just passed another sign post along the way to the twilight zone. The little H&S, 2nd right shoulder that I showed you the other day, gave way this morning and we are fast approaching the big neckline at 390 or so. If the big neckline eventually gives way I will be looking for a rather swift decline down to our major support zone around the 280 area. The reason I think it will be rather swift, 4 to 8 weeks, is the reverse symmetry to last years August rally that was very strong on the way up to the 400 area. There will be no shelves of support until we get down to the old support zone around the 280 area to slow the decline. This is how markets work IMHO.
All the best…Rambus
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