Stock charting is the art (science?) of looking at the price movements of equities (and other financial instrument prices) to find logic and justification for future price movements.
There are many chartists theories. As a chartist skeptic, I find the mantra of chartists to be one similar to those of various religions. Everyone has a theory, justification, and historical precedence to back their ideologies. But when a skeptic eye it put to the test, one starts to wonder if the results are the "chance" happenings that people remember, while forgetting the 20+ times it didn't work out as planned.
In any event, just like real life where so many people turn to religion when they have a personal chrisis, I find myself turning to the chartists when I start to question the market direction as I see it.
A couple of the bloggers I subscribe to said we are in a "head and shoulders" formation. I took out my crayons and drew my version below. Even if this does come to pass, as previously discussed, it is possible around SPX 810 for the market to find some strength.
Best laid plans always go wrong, but if this downswing does take us to 810, it maybe time to close positions and take very small positions moving forward, but always looking to add to my gold mining positions in hope to eventually be all in precious metal miners.
In any event I have found solice in the chartists ramblings that this reversal will remain "below the head" and turn down.