Facebook's Form S-1 is out. The big news is that the obsession may have already peaked. Its monthly average user additions has slowed from 2010-2011 by 4.44%.
Google has broken down, leaving behind a 49 point gap. AAPL is languishing at all-time highs with a fraction of the volume needed to sustain its momentum. All the market needs now is for investors to peak under Zuckerberg's kimono and get spooked.
The Facebook IPO needs to go off huge. Anything less may cause a cascade of selling on the news inspired by the perception that Facebook is the merely a publicly-traded MySpace.
I think we could be just hours (maybe days) from a top. Today's stop is clearly defined: 1321.41 on the S&P cash. A very clear impulse pattern has formed from Monday's 1300.49 lows. Below 1321.41 would cause an overlap which would automatically disqualify it as an impulse wave. We'd then be looking for the triangle that I mentioned yesterday morning. In that case, 1305 could be a target area (wide) but 1300.49 would be the hard stop. Below that and we've got more downside.
Anything above 1333.47 and it's all out. Flat.
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