Is it Real?

Well, today's Dubai crisis could just be a short term correction or a turn for a new down direction in the markets. I propose that it is the latter based on several long term factors including:

1. Dow Industrials has completed a 50% retracement from the March low

2. All markets are reacting negatively including metals and stock markets with no exposure to Dubai

3. The long term dollar chart has completed a pattern that indicates it will have a dramatic turn upward (chart attached)

4. Numerous individual stock patterns suggest complete ABC retracements from the 2007 highs as well as having reached strong resistance levels

However, having said all of that, confirmation will not be complete until the S&P 500 closes significantly below 1070

My recent previous calls:

AXP almost hit my target of 42.50, reaching up to about 42.20.

MCD hit 64.50, much lower than my low 70's target, but I believe it may still have strength to get there but that depends on its pattern in the coming downturn.

S&P 500 went beyond 1080, up to 1110.