The Best-Laid Plans...
Sometimes a pattern works out exactly as you were anticipating, and yet there isn't a darn thing you can do about it.
I theorized that if the SPDR S&P 500 (SPY) broke beneath $117.20, then a return to the $115 area was likely. It came to fruition all too well. Unfortunately, unless you were trading futures, the pattern didn't offer a chance for entry because the pattern was met with a gap before the $117.20 number was violated. Actually, the gap was the violation. The second thing I was looking for from my last post on Friday was what we have seen this morning: "a very similar pattern to May-June 2010. If it repeats, then we should see one more surge lower in equities and push higher in the Volatility Index (VIX)." We've seen that as well this morning, and the better-than-expected ISM Services number is giving us the boost we may need to see that pattern continue to play out....375 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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