Ascending Triangle Becomes Ending Diagonal

The ascending triangle pattern was invalidated and has morphed into an ending diagonal triangle. I have relabeled the critical levels. The Qs cannot exceed 52.86 or the EDT as I have shown it is extending. I think we have reached the edge of the chart for the bears. Either this thing reverses tomorrow or Thursday and starts to sell off in a meaningful way, or the bears might as well throw in the towel and get long at the first opportunity.

In August, I posted some comments on silver, http://tradercraig.blogspot.com/2010/08/last-chance-for-silver-to-fall.html where I laid out the case that silver had to fall almost immediately or the silver bears would be in trouble. I think we are at the same place with stocks. The count is different and the reasons are different, but when we have a nearly completed count that should lead to a selloff that doesn't happen, we have to be prepared for the opposite to occur. In this case, it would be a strengthening rally in stocks that lasts the rest of the year.