On July 27th, the “Power of the Pattern” suggested that a storm was on the horizon and that investors should get out of its path, by reducing risk exposure. (See post here)

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The S&P 500 is nearing mid-term channel support, around the 1,090-1,100 range at (2) above. The key question right now?    Is this the eye of the storm or is it behind investors?  So far this storm, in hurricane terms has been a CAT 1….If support breaks at (2), the back side of the storm is yet to come. 

Officials are suggesting people respect what hurricane Irene could do…respect what damage could happen if support at (2) is broken as well!

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