Teddy Bear's Picnic
If you go into the woods today, you're in for a big surprise...
The technology heavy $COMPQ has been taking a beating more than the $SPX and it shows it as it stopped Friday's slide at the 100 day simple moving average. Attempting to define a W bottom is proving a little difficult hear as it has pierced the BB on it previous two visits to the lower bound. The 200 day simple moving average is down below at 2968 and a support seems to be appearing to materialize around the 2974 area. This looks like a possible head and shoulders that has just broken below the neckline, but with Elections and QE3 we shouldn't be getting too bearish just yet. Be cautious, just don't break out your bear costume just yet. Maybe all we need is the "Teddy Bear's Picnic" which is not as threatening. Patterns do fail, and when they do they end up reversing with a vengence. Take a look at Bulkowski's busted patterns page.
