Look at these charts in tandem. The six month chart at the top shows the current move could be the final piece in a bull market flag pattern -- prices have jumped to the upper band and appear ready to move through the band. The three month chart shows this in more detail
First -- this blows the "head and shoulders" analysis out of the water. In addition, it is starting to look like evil trader was right about this being a trap.
3 comments:
Just remember these three charts:
1) http://i133.photobucket.com/albums/q52/Jimdotz/2009-5mo.jpg
2) http://i133.photobucket.com/albums/q52/Jimdotz/1930-5mo.jpg
3) http://i133.photobucket.com/albums/q52/Jimdotz/1930-3yr.jpg
Today's movement, while significant, does not necessarily blow the H&S analysis out of the water. There very well could be a second right shoulder forming. (And in fact, one could discount the first right shoulder because it never came down to the neckline.)
Only once the S&P breaks 930 can you say that the H&S is invalidated.
hi
what is a bull market flag pattern?
are you suggesting that while the 3-mo. looks like a turnaround, the 6-mo. indicates movement upwards?
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