The MOTHER of all DOUBLE TOPS confirmed 2/27/09

E

ess1096

When the S&P started rolling over in October 2007 I considered, but then laughed at the possibility of a double top of such huge proportions. Now with the February monthly bar closing today it has confirmed itself. And what's worse is it closed on it's lows (daily, weekly & monthly).

Next support should come from the 605-681 range. If it trades through that, and it certainly could, it won't find support until 482, the 1994 tops.

Of course this is long term analysis for position trading. Daytrading and swing trading will be business as usual. :)

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Good chart reading! But whats the relevance of telling us the obvious?

Let alone don't forget that Technical Analysis is not an exact science.
 
Quote from dinoman:

Good chart reading! But whats the relevance of telling us the obvious?

Let alone don't forget that Technical Analysis is not an exact science.
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Oh God, there's always one.

Obvious to you and I maybe, but maybe open for discussion to others? And you are right, TA is NOT an exact science. I'll post that disclaimer next time I post a chart. :D
 
I agree with your analysis. One should never get complacent though. Should a squeeze materialize under the current circumstances, it will gain considerable momentum before burning out.
 
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