S+P 500: STRIKE 1

The S+P just broke down support of the first confirmation that I discussed in this recent post.  I wrote,"I think that if the current lower support line holds then one of the 3 paths shown will likely play out.  I suspect it will be the blue path (lowest of the 3 parallel lines) because that will lead to a declining double top (which I have dubbed "owl ears").  That has been a popular topping formation for this cycle so I'm betting on it here as well.  we will know a lot more in the next couple days."

As you can see below, that is the path that seems to be getting taken.  But I do have one important update to make.  See how the last bounce off the lower support line was only 3 waves up instead of 5?  That means it was not the 5th wave.  It was the second wave of the new bear market.  In other words, what I originally labeled as a lower level 3 that touched the top rail at the half way of the upper resistance line was in fact 3 of 5.  Then what I labeled as 3 of 5 near the top of the upper rail (the one with the throw over spike) - that is really now confirmed to be 5 of 5.  That means that the trip to the bottom rail was 1, not 4. Then the 3 small waves up is 2 and now a massive, sheeple awakening 3rd wave down is expected "with gusto".

This all happens by levels of confirmation.  The break below the lower rail was strike 1.  Also note that this took place as part of an intra-day reversal.  That is very bearish.  The shape of that declining double top is U-G-L-Y.  If the controllers of this market do not push the S+P back up into that channel real soon now, as in today or tomorrow LATEST, then it's very, very likely (95% chance IMO) odds of being good night Irene for the stock markets.  That VXX should be skyrocketing soon as everyone goes running for "insurance" in the form of puts.

More than anything, a massive move down in the stock markets will reflect a loss of confidence in Obama and, I think, in liberalism in general. Everyone thinks that Hillary is a shoo-in for president in 2016.  I THINK NOT.  I think the liberals have peaked and that the scam of Obamacare was their Waterloo.  GOOD RIDDANCE.  I just hope that the RINOs don't get control next time and that includes the main stream Chris Christie.  I want Rand Paul to have a chance to turn this country around and I think that America needs to give a real fiscal conservative who values freedom and privacy a chance.  Anyone promising a no pain recovery or other something for nothing solutions is nothing but a liar.  We need someone to tell us the truth, no matter how ugly it has gotten.  We need to clean house.