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Quality Investment advice from the Beatles hit song “Let it Be” sure applied when it came to what to do at key resistance and the “Head & Shoulders” topping pattern….suggesting that investors should- Let It (Risk Assets) Be and just harvest/walk away! This type of long-term resistance/topping patterns was suggesting the “Buy, Hold & Hope“ strategy was going to be challenged in a big way.
The mid-line of the multi-decade rising channel is now in play at (4), with the bottom support line of the channel over 25% below current prices.
A break of this support line would re-enforce two themes….(1) Let Risk Be/Risk Off is the position to take and (2) GE2 (Great Escape 2) will pick up selling momentum! (remember in 2008/GE1, there was no place to hide…the same thing is happening again!)