We may have an answer, lets see if it holds.
Friday, October 8, 2010
The Bear Flag Was A Head Fake?
Yesterday I twice proposed the question, was yesterday's normal market action of breaking down below the bear flag, then rallying back into it the work of black-boxes and market makers/specialists that have been breaking up 85% of these patterns or was it something more serious?
We may have an answer, lets see if it holds.
We may have an answer, lets see if it holds.
5 comments:
Man this market wants to go up but it sure needs the weak dollar for ti to happen!
Looks like 116.2 on the spy is showing resistence. It has tried 3 times to close above it and gets knocked back everytime.
Ascending triangle on decreasing volume, with the transports coming to the rescue. Looks like they are going to try and break the resisitence. Watch for a false break below.
Until the dollar and equities go down together we stay up?
Looks like it may have been a fake for the longs to get them to bite. Lets see if the volume picks up to the downside. That last push up into the wedge was on increasing volume, which goes against the idea of a rising triangle. They might try again, but may have lost to much momentum on this pattern. Doesn't mean they won't try to build another.
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