Here’s the last post on BAC: https://bartscharts.com/2016/09/04/bank-of-america-short-pattern/ Yup, all the way back in 2016! Important because this is a GREAT example of a failed pattern. Why bring this up, now?
Well, I’ve talked to a couple people over the past couple days and they are all STILL very bullish. Consensus. We are going higher. This is going to explode … GET LONG!
Not arguing this, just showing you guys what I SEE not what I BELIEVE. I see some significant resistance up here. It’s just a PATTERN.
So, IF we do have patterns FAIL up here THEN we could have an explosive move, much like the move that followed in BAC shown below. BOOM …I’m not kidding, either. This market could explode higher and vacuum in a way that, might be unimaginable. Go for it! That being said, when your ants in the backyard start telepathically communicate w/ you it might be time to take some profits because, the correction following such a parabolic move will be monumental and, perhaps, market breaking. Hence, how about a little correction … 10-15% and then start the climber higher. If I was I back in the jet flying like the euphoria that I sense/feel in the chatter and energy present, I might, knowing what I know now, down myself or just go on leave or do something to walk away and decompress and RESPECT the environment in which you are playing so you can approach this big game of risk w/ a humbleness born from risking it a little too much once or just enough to scare the dickens out of you …but you lived. Now might be that time. Or ….NOT! To be or not to be …it really doesn’t matter. 😉
Banks – lead us UP and lead us DOWN. Here’s bell weather folks w/ a TON of math coming in here or a little higher. Want to test our thesis? If BAC SMOKES the levels shown below then this market is really about to explode higher. Banks ..up up and away! So does the market …
However, if BAC stops in/around here …then the patterns shown w/ the DOW, the perfect square out w/ the NYSE Index Inception, not to mention Square Outs of the ATL on the DJIA and it’s inception date of May 26, 1896 along w/ multiple trend lines … an actual LOG trend line from the peak in 1929 is being hit … the resistance should appear here and now.
Throw in the Bradley Stock Market Model (Thanks Larry P http://www.tradingtutor.com) and we are at a very important point in time. Note, the Bradley Model is a timing tool more than anything … based on some trend ‘stuff’ it has an idea of the direction, that is not the most important part of the Bradley. It’s the TIME component … that day w/in a day or two is the key.
So, now you can see, the PATTERNS that we are seeing are ALSO coming into play w/ a Bradley Stock Market Model Date. BOOM …
We will know soon enough.
Bart
PS – want to acknowledge all the sources below. Hat Tip.
