Wednesday, September 18, 2013

Couldn't ask for a better set up...

I've been patiently waiting the past couple weeks for a bearish set up to compliment the lifetime resistance and megaphone pattern that is currently in place for the Dow Jones Industrial Average. Today, courtesy of Ben Bernanke, I believe it has completed. The Dow and S&P 100 Index are both testing significant resistance areas on their lifetime charts and while there could be a couple more days of chop, the ball is back in the bear's court.

The Nasdaq 100 is also touching it's rising channel resistance.
I believe gold could go higher until it reaches 1450 where, if rejected, it could pull back towards $1300 oz.
All in all, this is as good as a chance to be leveraged short and even if the market manages to grind it out a few more days, the ensuing losses will take out months of gains.

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