That's a Bear Flag

As predicted, some sort of flag or triangle, that's a bear flag, it keeps shorts in the game, a break below the flag should see volume pick up a bit, a new lower low on the day should as well. Each trader has their own limits of risk, some will short early as soon as they see resistance at the triangle, but not many, most want some price confirmation, we saw the first break of support for today drew some shorts out. A break below the flag will draw some more out and the most nervous of them will wait for a new intraday low on this move down from resistance.

This is exactly what retail Tech. traders expect to see, what Technical Analysis has taught them to look for, it's just those who are trading against them and us, have better tools, more information and know even better than I do how predictable these traders are. Don't forget where and why the majority of traders went from managed brokerage accounts to managing their own and why Technical Analysis went from something people use to openly mock like, "Oh, so you can tell what price is going to do by watching those squiggly lines? LOL-OK! Good luck with that!"

The reason there was such a major shift in sentiment about TA and so many people picked it up is because it's a lot easier and less time consuming to call something a buy or a sell based on what a couple of moving averages do (which is one of the most popular forms of analysis to this day-moving average). What I'm saying is the majority of retail technical traders are just plain lazy, that's why they keep doing the same thing over and over no matter how many times they get burnt.


And as I'm typing, the bear flag is just breaking now. Keep an eye on the volume.

SPY 1 min