A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.
I'm seeing some pretty clear trading ranges as this bottoming process continues. And I guess we're going to become experts in the Inverted Head & Shoulders pattern.
The YTD darker dotted lines are sporting this pattern as the lighter shades show the slowing rates of trend change down as well as up.
As a note I went back and looked at the October 2008 top and found a similar 3 month topping H&S pattern. You may find it interesting that it retraced to the next to last line before falling. Meaning if this is the bottom we could reasonable expect to see 75 on the SPY or 750 on the S&P 500 before the Bull market can begin in earnest.
Short-term range from the rising EMA's at 81.0 to 87.41 and then again from 87.41 - 94.45
Remmber as the pattern completes the breakout will eventually fail and the swing down will be quick and violent. So as we approach these lines of resistance it's an easy trade to get short toward the tops of channels and get long toward the bottoms of channels with stops just on the other side.
So the media is saying that the market is holding up when it receives BAD news.... Well next week there will be O'Plenty of it folks. The way I see it you'll have Monday to make up your mind if you have the cojones to get short. But the real bottom line next week is "Will traders want to be in the market after Thursday?" Market closed for Good Friday and going into a vacation week for many. The answer of "is this Bull market for real ?" WILL be answered this week.