In the past few days the indices have completed multiple bearish patterns and broken through significant levels of support. The ISM and jobs figures were poor. The commercials are now net short. These are not surprising new developments, but rather part of a long-awaited convergence.

… If you’re long equities, and unhedged, you’re likely to get an ocular penetration experience not seen since 2000.

– Karl Denninger, 2008-01-04

The party is about to begin, and oh yes, did I mention it’s going to be spectacular?