They say you can put lipstick on a Pig and yet, its still a Pig! I attempted to warn investors that the Wilshire 5000 created a pattern that wasn’t very pretty a couple of weeks ago (Head & Shoulders pattern), around the height of the debt ceiling debate. (see post here).
Below is an update to the Wilshire pattern, focusing on….. key kisses of resistance.
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From a macro perspective the pattern of a few weeks ago, a “head & Shoulders” pattern with an underside kiss of wedge resistance at (2) was suggesting that long-term risk management of capital was very important.
Remaining on the macro-theme…if support line (4) is taken out odds increase sharply that broad market selling pressure will continue and that prices in the future won’t look as pretty, as they do now!