Hey, it's an Op/Ex extravaganza, so who knows for sure what is in play today? But it sure looks like the Dow is going to test one of the two theoretical neck lines if the short term breakdown off of the baby topping pattern holds. Dow below both SMA's 50 and 200 does not help its case one teeny little bit. This is a market for traders and speculators only in my opinion and has not been easy for bulls or bears. With the Bernanke wild card thrown in there, things are made all the more confusing.
But it sure looks like that neck line is going to be tested at some point soon. Plot out the distance from the top of the Head directly down to the neck line. Then subtract that amount from whatever level the down-sloped neck line is at if/when it breaks and you will have a good idea of Dow's downside potential in the coming weeks or few months. Again, if the neck line breaks.
