The Big Well Seasoned 2009 Summer Feast Of The Market Bears, Tasting Right Or Too Perfect?

By: Eric_Chevrette

Stock-Markets
Diamond Rated - Best Financial Markets Analysis ArticleThese days a big load of emails, some of them originating from big names in the field of “market analysis”, did hit my mailbox trying to convince me that the times were especially dangerous for stock market investors; likewise, you may have come across and even read some of these many articles exhaling the same bearish tone for the rest of the summer.I guess the same did happen to you, so maybe it would be the right time to review the MAIN argument raised in these shocking mails; as a matter of fact, it is now pointed out by most analysts that US stock markets would display some specific patterns known from repeated past experience to pose a serious threat of a likely swift slide. Well, a quick look at the NYSE Composite should make you grasp within seconds into which emotional direction these analysts want to drag you down…...

Chart #1
Yes, no possible doubt, the US market is displaying a clean H&S pattern, and as even beginners would know, that specific shape is a terrible threat, especially once the neckline has been broken to the downside: with a “head” claiming 600 NYSE points from the neckline, it is now rather easy to find experts warning you that the NYSE Composite would be heading for 5750-600 = 5150, still a total loss of 17.6% from the June tops. As to the more famous SPX index, also displaying the same visual “threat”, it would possibly slide down 70 points (950-880 = 70) below its own “neckline”, that would be a target down to 890-70 = 820, still a total 13.7% loss from its June tops around 950 (we did feature the NYSE Composite instead of the more famous SPX with chart #1 because the NYSE is truly GLOBAL thus more relevant than the SPX; indeed, you would rarely expect the appropriate answers to be found in the charts which the crowd is feverishly staring at).

Well, no matter what their other more or less serious fundamental and/or technical grounds might be for growing bearish about US stocks, these hot analysts should tell you ALL about this massive H&S threat: as a matter of fact, it is NOT AT ALL just a US threat, because it is merely a GLOBAL “threat”. The easiest way for you to become aware how GLOBAL the H&S threat has now become is to go at once for a fast “world tour” with charts #2 to 12.
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