The Triangle on that chart has a target ~3700 points lower, or if we were to break it tomorrow, approximately DOW 4200.
And that's the most bullish of the primary indices, all of which are sporting similar formations, and all of which closed right on the bottom boundary. Those of you who read The Ticker regularly know what my target is on the downside for the S&P 500 if this triangle breaks.
For the record, December closed at 8776 on the Dow Jones. The target on this technical formation is for a loss of another 50% from there, and as I said, that's the most bullish of the primary indices.
That would be back-to-back roughly 50% losses.
Read on...
Click thru to see the charts referred to above. Denninger doesn't think Obama is on the right track. The Dow tanked almost 400 points after the unveiling of Obama's plan yesterday. Peacenik didn't see too many pundits who thought things would get better today. But the Dow always surprises. Peacenik thinks capitulation could be this week. But investors may decide to keep pretending for a bit longer that there is value in the financial industry and the market. The world is on the edge of Doomsday.....Financial Armageddon. Will the world muddle through? Ask Peacenik on Friday.
