At the risk of being repititious, US markets are following their...

At the risk of being repititious, US markets are following their previous basing pattern.

A low followed by 2 very sharp pullbacks during the early days of recovery, making 2 higher bottoms.

Last weeks low must hold if the pattern is to be repeated yet again.

If it is going to fail it will be at the last possible moment.

So we might see a smaller day down followed by a big day up and the collapse.

In '87 the US markets did a pattern in May/June that was repeated in Sep/Oct that made it look like a road map to a bullish conclussion.

At the last moment it failed and you know the result.

My one doubt about the downside is that option writers are usually the winners and they won't like to see disaster till after expiration.