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.


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!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past