The stars are aligning for a big rally next week.


The inverted head and shoulders pattern is still intact.  To create a symmetrical right and left shoulder the market needs to be down tomorrow and/or Friday.  The perfect place would be 12,300 DJIA.  Fortunately, a standard head and shoulders pattern printed on the 1 hour chart.  The target for it is....wait for it.... 12,300.  I am still recommending holding bullish positions, but I'd be willing to bless buying on Friday.

I think Monday will be a Win-Win no matter the outcome of the Greek elections.  If the sane people win, there will be much rejoicing.  If the crazies (Syriza or whatever they are called) win, everyone will start talking about QE3 or the Fed stepping in to save Europe because they will have to.  Beyond that, this inverted head and shoulders is super easy to see, and should be a self-fulfilling prophesy for technical traders.. and I think there are enough of them to move the market.