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

[suriNotes]

Variation of FTSE Double Top pattern from last year March 2008.
Published in "The Technical Analyst" (UK) magazine (June 2008)

Regards,
Suri

 

[ess1096]

Quote from George Parr:

Nice.

May I know what chart program that is? SierraCharts?

It's TradeStation George.

 

[ess1096]

Quote from piezoe:

................One should never get complacent though. Should a squeeze materialize under the current circumstances, it will gain considerable momentum before burning out.

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

 

[techisbest]

No, but patterns are patterns because they occur frequently and meaningfully. They represent market behavior that should not be ignored. They represent market behavior that suggests where the market is most likely, even if not certainly, to go next.

Ignore patterns at your own peril.

 

[ess1096]

Quote from 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.

Could it be that the 681 level was just tested? An astute trader should be watching that level.

 

[ess1096]

Quote from ess1096:

Could it be that the 681 level was just tested? An astute trader should be watching that level.

This level held again.
IF, IF there is going to be a technical bounce or bear market rally, this seems like a good level for it to occur. If so, first target is 800. Second target is 1000 (or 200 day MA).

 

[ess1096]

Quote from ess1096:

Could it be that the 681 level was just tested? An astute trader should be watching that level.

............................
IF, IF there is going to be a technical bounce or bear market rally, this seems like a good level for it to occur. If so, first target is 800. Second target is 1000 (or 200 day MA).

Was a good week. Looks like the street was watching that 681 level as well. I dumped all my puts last week except for the ones purchased to hedge long positions. If the chart shows follow through next week I'll be looking to take some profits at the 800 level and let the rest ride for a test of 1000. Until next week

 

[ess1096]

Quote from ess1096:

.................If the chart shows follow through next week I'll be looking to take some profits at the 800 level and let the rest ride for a test of 1000................

Took some long positions off the table today when S&P touched 800. Bought some puts to hedge the profits in the remaining long positions just in case the 800 level resistance stops this Bear Market rally.

 

[Clubber Lang]

Nice trade, and thanks for the charts.

Good luck.

 

[ess1096]

Quote from Clubber Lang:

Nice trade, and thanks for the charts.

Good luck.

Thanks, and you're welcome.