Can I Help Ya Help Ya Help Ya?

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Over the course of a dozen trading days, the Dow Industrials lost a delicious 800 points. Since the temperment of you good people seems to turn on a dime, Friday’s one-hit-wonder probably has everyone back in buy-everything mode. Not me; I can’t remember the last time I saw so many amazing topping patterns.

One example is Delta Airlines which, like so many charts, has broken its intermediate-term trendline and is sporting a good-looking topping pattern as well. Here’s a longish view:


Zooming in closer is where it gets trickier, and this trickiness is a menace to many of the charts, because it’s hard to determine what is a reasonable exhaustion zone for the bounce. Is it about $37, as the red line suggests, or is it closer to about $40, where the last intermediate-term “lower high” was? It obviously depends on the market in general. If the absence of bad news is all it takes for the market to keep surging, we’ll have to endure the more robust bounce. On the other hand, if the hailstorm of ISIS, Ebola, Ukraine, and God knows what else continues to plague sentiment, then we can get back to the fun we were having for the majority of the last three weeks.