This chart is just to show you what is possible. I am not a perma-bear nor do I want another bear market like this to happen. But knowing what is possible still has to be known. Major market tops are a lengthy process and tends to take several months. If this is the case then it could be a wild and choppy market for the rest of 2013. Do not expect price to just collapse and free fall for 18 months… Dreams like that do not happen. Bear markets must be actively traded because they carry a lot of risk.
The Technical Analyst Conclusion:
This week is do or die for U.S. stocks. We need sellers to step in here and pull stocks down. With the S&P 500 trading at resistance, stocks being overbought on a short term basis and the holiday week behind us, which typically favors higher prices, it is now time for sellers to become active once again.