Bank of America (BAC) is breaking down.

I saw an article on Seeking Alpha about fortune favoring the bold or some such thing which was bullish on BAC.  Naturally I discounted the entire text of the article and went to the chart.  By two different counts (normal a-b-c as well as ending diagonal), this looks like the end of BAC's bull market run since the 2009 low.  Next support is at $14 and if it cannot hold that then my larger model (scroll down to the monthly chart) will likely be confirmed.

Below is the monthly model showing that I think BAC is tracing out the internal 3 wave moves of a 4th wave triangle.  This is a trader's delight and right now the trade is to go short.  Your stops are clear:  You definitely cover at any break of the upper orange channel line if not much sooner.  Personally, a re-take of $16.50 would send me to the sidelines but I am pretty confident that this will not happen.  Nothing has changed for the banks.  They are still holding onto large blocks of housing debt that will default once housing prices begin to credit-deflate as I believe they must.  The fed has been buying all of the crap loans taken on by fannie and freddie since 2009 which is why its balance sheet is such a piece of sheet at 4+ trillion dollars.  With their balance sheet loaded to the gills and interest rates already at historic lows, there is no place for housing prices to go but down and that will kill the weakest banks eventually, including Bankrupt of America.

Note that this chart is scheduled to break down into the 5th wave in 2017 (right when the TDAmeritrade StrategyDesk indicator goes nuts with the year as reported on here).  If we find support at that red D wave then it would be a fine time to buy the government supported bankrupt banks again.  Until then I expect a powerful sell off into 2015.

One more note: the markets might become unsafe for shorts or longs after red "e" above.  In other words, our desperate, thieving, corrupt and scam-ridden government might nationalize stock market assets or cause a false flag on Wall St, etc.  Put nothing past these moral-less bastards.  Anyone who could support the destruction of 9/11 like our government did would go to any lengths to retain power.  If you want a model of how things can play out, just look at every other despotic 3rd world $hithole on the planet.  We are not there yet only because we are a bigger flywheel.  There can be no real hope for change unless and until regime change takes place whereby the single choice system made up of 2 fake political parties is swept away.