I wanted to show clearly how "shooting stars" can signal imminent downlegs ! There are three visible shooting stars on the following monthly chart (A,B,C). All three of them resulted in quick and nasty downlegs.
In the final phases of the secular bull market in the late 1990's Shooting star (A) unleashed a fast correction to the downside of approx. 20 %. Then the main trend resumed to the upside !
Now we are in a secular bear market!
Shooting star (B) unleashed a 40% correction to the downside ! This time,however, the market is not resolving to the upside as it did in the late 1990's reason being that the secular forces are different this time !!
Shooting star (C) "if confirmed on Friday May 29 th" could very well signal the beginning of a new serious downleg to fresh new lows !!!
I'll be monitoring closely the end of this month to confirm this "Bearish shooting star". This is why I advise more than ever to be extremely cautious on buying stocks !!! If the pattern is confirmed than I doubt we will see S&P above 1000 anytime soon !!!!
