Sunday, March 29, 2009

Inverted Saucer?

Friday we collapsed out of the black ascending wedge and found support at the 81.54 area. Still multiple times through out the day that region was pierced, but still remained as support. The two day formation has now taken on the appearance of an inverted saucer. The gradual decrease in the rate in which the market has advanced on Thursday combined with the gradual decline on Friday lends it self to this pattern. Typically this is a longer term pattern though. I would expect a sharp drop once the support is pierced and becomes resistance.

The daily candles have taken on aspects of a tri-star pattern which is a bearish reversal. Stochs have been overbought for quite some time now.


Shanky said...

Let's go get sum shorts!