With no Fed-induced nuttiness to pressure bear into covering short positions, stocks fell hard yesterday in line with our expectations. The bad news — for bears, that is — is that the selloff left intact the bullish pattern we’d been using to project a swing high at 2132.00. The point ‘C’ low of the pattern lies at 2064.50, 5.75 points beneath Thursday’s intraday low. Things could go either way on Friday, as is often the case, and so I’ll hazard no prediction about the outcome. The somewhat bigger picture is of a stock market that, trading near all-tine highs, has still managed to look like hell.
