It is not wise at all to ignore chart formations. The triangle we pointed out as the present dominant formation in the market appears to be working — or wreaking — its power over prices. Readers have heard us disavow measuring formations over and over and disavow responsiblity. With this disavowal in mind the predicted downwave of the triangle targets 1138.18 — uncomfortably close to our trend stop, but still 7 points off it. That target comes from measuring the depth of the triangle and subtracting it from the bottom of the triangle.
Do we believe this? Once again we don’t believe anything. We analyze.
Actually we do believe in the innate criminality of Congress.
As Mark Twain said, “Americans are by nature an open, gregarious and honest people and our only native breed of criminal is the Congressman.”