WOW! Take a look at that, over 500 points in less than an hour. Can anyone say plunger protection team please? But there you have it, a double bottom. Well a double bottom on the two day chart in the 5 minute time period.
For a more definitive view it's take a look at the three-month chart in the daily time frame below.
You can see the fall from grace at 12,000. But what's more interesting is the last three candlesticks. Take a good look at them. See if you can draw a line roughly across the tops of the last three sticks and the bottom of the last two sticks. If you do that then you will get a very huge very significant triangle. I am not predicting that the triangle will form, but if it does it will be of significance. So, I feel compelled to mention it.
Let's think about what's going on here. The VIX is at 43 and everyone is scared as hell. I think that Wall Street has everyone right where they want them. Remember their job is to scare you out of your positions just before they buy them cheap. So, I am going to stick my neck out here and say that it's time to buy.
I will stick my neck out, but I will not put my money on the line until the DJIA is above 10,800. The thing to do then would be to buy some beaten up bargains like Goldman Sachs, or stocks with relative strength like IBM. But let's not get ahead of ourselves, let's wait and see what happens.