Monday, February 25, 2013
Something to keep an eye on with the sequestration battle finished with the unthinkable, actually spending cuts. Of course, that is being sold as Armageddon. We have been in a rising wedge which is very bearish. This is why I am paying attention to every little bearish sign. A rising wedge which goes back for a year would resolve when the wedge is retraced to its starting point near Dow 10,000. Minimum. This little higher opening and lower close should be good for at least a few hundred points. Bearish patterns and sentiment, which I have noted earlier, makes this market primed for a fall. I will keep an eagle eye on the market to see whether this looks to be turning into something bigger.