Monday, April 15, 2013

3 Dips & A Shakeout - Update

Back on March 20 I blogged about about a repetitive pattern that I noticed off the recent November lows.  The U.S. equity market has traded in a very neat, tight, upward channel with barely a 3% correction along the way.

As the updated chart below shows, if that pattern is to repeat even on a small scale, the SPX would fall below that parallel channel for the first time since it took hold. 

Will we finally see the elusive 5-7% correction every pundit has been calling for?  Or is this the beginning of a deeper intermediate correction like we've seen the past few years around this time of year?

As always, honor your stops.


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