Again, here we go

I tracked the head and shoulders pattern which I believe we are hitting now. I was concerned about the right shoulder in the last move up and down was not significant enough in terms of how high it stayed and there was no topping pattern. The topping pattern of the left shoulder now looks very similar to the right shoulder. It looks like the he'd and shoulders move has been reached and the market will work it's way lower.

In addition to technicals it looks like the economy I faltering as there are a few troubling signs out of Europe again, such as a reignition of Irish banking problems and negative GDP in Greece. We will continue to monitor but it looks like we may easily see new lows on the year should these patterns hold.