Are Financial Markets Heading For CRASH? UPDATE

I commence with my gratitude to The All-Knower

I have received quite a few inquiries about the last post of potential crash looming.

Please remember, I had stipulated a pre-requisite that S&P-500 breaks below the low of 05/18. It must be noted that DJI has already violated the low of 05/18, once SPX follows the pursuit and low of 05/18 is broken, then floor shall fall off from underneath of the US stock markets. The sell-off shall convert into the panic selling and usually third thrust down is the sever one and it happens in the form of capitulation. Recent support at the 05/18 low was an obvious once, as it lies at about 50% retracement level of November 2011 to April 2012 rally. Tuesday rally failed at the 38.2% of the same rally.

If the 05/23 was successful test of the recent markets low, giving a double bottom pattern then, the rally continues, and for SPY $135-136 is the maximum target of this potential rally, before it turns down once more.   Once it break below the 05/18 level then, support or bounce target for SPY is at 125-127.

see attached

THE MOST ACCURATE FORECASTING OF FINANCIAL MARKETS

http://trade-in-harmony.blogspot.com/