The Latest S&P Pattern Is Exhausted

This is the third iteration of this pattern we have posted in the last month.  In the first, in late January, we remarked of price and time and said “this pattern is nearing exhaustion”.   While the market may seem as though it has risen substantially without abatement during that time, the reality is it has only risen about four percent.   Indeed a large move for a single month but not as much as it may have seemed.   Were this pattern to perfectly complete, we would see a rise to approximately1360 or just about 10 more S&P points from Monday’s high, a rounding error.   The problem with a rise to that level, which is about a half a percent from Monday’s high, is that the pattern is now officially exhausted in time.  It should have expired on the 15th, or one week ago today.   Of course, with today’s move, we have erased all gains since the 15th if we are indeed looking at a time overshoot.

Obviously patterns are esoteric topics often driven by forces we don’t understand and misinterpretation but banks were absolutely butchered today after being rejected in an attempt at taking last April-May’s price.  As we have said numerous times, using our volume cycle count algorithm and some other proprietary data, May 2010 was the turning point for the 2009 and 2010 rally until proven otherwise.  The equity and debt markets of countries driving the global economy have not retaken the April-May 2010 high.  And neither have Wall Street firm’s equity prices.  That is very telling because this is a finance-driven economic “recovery” courtesy of graft and manipulation.