Last week I wrote about the possible development of a "Bullish" Descending Wedge pattern in the making for the Dow Jones Industrial Average. Since then, we have seen continued selling and a steepening of the top line on the wedge pattern. This present pattern is currently unsustainable. There is absolutely no good news out there... at least that anyone is reporting on. Furthermore, we have actually seen an increase to the negative volume, but not to the point seen in November. Will the market crash? Maybe, but I don't think so. Everybody is calling for the market to go much lower. Where were these "gurus" last October? I may be wrong, but I think we have the makings of a HUGE bear trap. It is estimated there is about $4 trillion in cash on the sidelines waiting to be put to work. I expect we will see some form of resolution within the next two or three weeks... Stay tuned.
Note: The above comments are not intended as specific investment advice to any particular person or portfolio. For questions regarding a specific investment decision to buy, sell, or hold, please consult your personal financial professional.
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