Here’s An Interesting Development
I like to wear the
“horns” as much as
anyone else, and if I’m going to put on the longs, I try to find classic setups
such as the Cup & Handle. But, if technical resistance in a more
powerful time frame, such as on the daily and weekly chart, breaks the
pattern…it’s often, time to consider putting on a short before the market
“spills” further.
In the TM
chat room there was a lot of chatter about the current levels being pivotal
in the near term as the market ETFs have all traded into awareness zones of
potential, significant resistance on the daily and weekly charts.
My own thoughts and words on the matter were
that the market, represented by the S&P 500 proxy
(
SPY |
Quote |
Chart |
News |
PowerRating), needed
to pull back from current levels as the index proxy formed what looked like a
Cup & Handle. But, in my allegiance to being a technician, and trusting the
chart action, I was more than willing to let the picture do the talking. In this
particular case, opinion, and the ensuing technical picture, fit together very
nicely, like a handle to a cup, before it falls to the ground.