Archived IMT (2009.07.08)

Just as markets attention was fixated on technical analysis on the way up (measuring magnitudes and durations of bear market rallies), attention today shifts back to the charts, with reference to bearish patterns such as head-&-shoulders and trend line support. Logical interporlations of classic of H&S formations suggest 7,500 in the Dow, and 810 in the S&P500. CRB already broke below its key trend line support from March as oil and gold extend sell-off.