Thursday, October 16, 2008

10/16/2008 Maybe some harmony in this mess?

Well we have max pain coming up this Friday, and it is quite a ways up from here.  So I would expect a lower open tomorrow and then a charge up into close of Friday.  It will not be a buying opportunity most likely.

However, there is a potential harmonic pattern forming.

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You can see this in my Chartlist.  It is the one all the way at the end.  It is called a Butterfly Buy pattern, and it would help to measure a double-bottom.  It is a measure of market psychology as well - a bottom is formed, then a mad rush to "catch the bottom", a retest where some more people come out to "catch the bottom", and then finally another test wherein buyers are either too committed or tired of being burnt.

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