Category Archives: Patterns and Formations

Consolidation Is King – The Market Needs A Foundation To Support Higher Prices

The S&P 500 Index bounced up 20% from its Monday low to its Thursday closing high. It seemed primed for the bounce and in Tuesday’s article where we pointed out a bullish morningstar reversal pattern. But we also mentioned that a V-shaped recovery was not what many technicians wanted to see. Volatility is extreme and… Read More »

The S&P 500 – A Break Below Current Support Projects Initial 7% and 10% Downside Targets

Monday’s market decline was brutal. The Dow Jones Industrial Average was down over 1,000 points. The S&P 500 Index opened below its 50 day moving average and below a long term uptrend line on the daily chart. The S&P did attempt a bit of a recovery in the Monday session around 3:00 o’clock in the… Read More »

The Technical Signs That Preceded Monday’s 1000 Point Drop In The Market

Normally market movement is related to a combination of causal fundamentals followed by a reaction that is technically triggered. The 1000 point drop in the Dow on Monday was the reverse. The movement was related to a technically tentative market condition that was triggered by the fundamental concerns over the coronavirus. The daily chart shows… Read More »