The market is at a major crossroads here. Lately it seems that nothing can hold the market back – – – the failed fiscal cliff talks mean nothing; the absolute impossibility of the United States ever honoring its debt without hyperinflation means nothing; the fact that the market is propped up by nothing but the Fed means zilch. We are still afloat.
But the head and shoulders pattern, marked in red, is now being challenged by its upside-down twin. I imagine that the Fed's announcement tomorrow will resolve this challenge swiftly.
