As alerted at 4/27/2009 3:13:26 PM, markets formed double top, after fading the morning GAP making the HOD at SPX 868.83, DOW 8122.56, and Nasdaq 1700.53, then retested the top and swing to near the LOD.
No sell in May and go away? Also, noted the series of diamond formations for the last 5-6 weeks in consolidation mode in a price channel after initial thrust from the SPX 666 low. Evidently, much waited lower market targets will not be see anytime soon at this rate
Even though markets are continuing to show negative divergences, markets are still trading in the recent up trend.
Shall we see a confirmation of a meaning market correction? In this volatile markets, VST traders should be careful thinking that markets will break to the downside as markets are compressing to make a next move. Anticipating a pull back at this point is an easy expectation, but markets can surprise many, therefore, need to be cautious. Market Formations: Most of traders are looking at the same formation: Inverse H&S As shown on the chart as it is quite obvious formation at this point. As noted, markets were retracing only Fib 23% since the March rally Started, and we are still seeing the similar market actions as we have Seen during the last several weeks. The obvious expectation at this point is inverse H&S, while H&S formation is quite desirable and hoping for. Waiting for a directional confirmation is quite obvious at this point. We can only hope for, PLEASE SELL and GO AWAY for summer.
Major Markets in diamond/triangle formations SPX is showing a diamond formation as shown below. Also forming a symmetrical triangle with a window of 845-870 +/-. SPX is showing a diamond formation as shown below. Also forming a symmetrical triangle with a window of 85 - 87 +/-.
DOW is showing a diamond formation as shown below. Also forming a symmetrical triangle with a window of 7800 - 8100 +/-.
Nasdaq rallied along price channel for several weeks
1650 - 1750 +/-. pivots
$BKX trading in symmetrical triangle/diamond formations 30-36 +/- pivots
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