timwest
Short

WFC is rolling over with 39 then 36 possible by year end

BATS:WFC   WELLS FARGO & COMPANY
646 3 2
Maybe technicians will also call this a head&shoulders top formation, but either way you look at it - it is running into selling pressure and the stock is being "distributed" by long term holders. The new buyers are being tested here to see if they can absorb all of the selling pressure from the long term profit-takers.

This "forecast" may be a bit on the extreme side of the forecast as I drew the top line first, then the bottom line. However, I doubt it will get to the "massive support level" I have labeled - but at least a move towards it into the end of the year would make sense to me.

Risk: 3 Average Daily Ranges (11-day avg             of high-low true range).

As for the whole market: Here is a simple pattern that has been useful to follow for decades.

The usual pattern is: First goes the bond market (down big this year), then banks and financials follow, then industrials, then transportation, then everything else. Technology is always last in major bull markets. For example. Microsoft             hit new highs until a week before the stock market crash in 1987. So, don't be lulled into thinking that because new era stocks are surging ( FB             , AMZN             , Biotech, Internet vapor stocks) that the market is fine. I'm not forecasting a melt-down or a crash at all... just a sideways to lower market for the next year or so to let the market grow into its valuation.

Until next time: Happy Trading

Tim 12:16PM EST, Thursday, September 26, 2013
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
Great Work
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So are you going to buy naked puts?
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$C $JPM $CMA and $USB all seem to be forming similar patterns. Each different in their own ways but all seemingly setting up for a slow grind to the downside.

On the other hand a couple "money center" stocks are looking like they are ready to push higher. One of my recent positions $MTB looks pretty strong.

It will be interesting to watch how the banking sector finishes out 2013.
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