Sunday, August 17, 2008

Index Chart Analysis: Wedges All Over: Very Weak Rally and Looks Ready To Rollover Soon.


Market Monk said...

Great charts (as usually) Stewie. There is a technical rule that states a move to a flag or pennant marks the half way point of the move.

Looking at the $NYA chart we see a move down from 9600 to 8400 (1200 points). A pennant (or what ever you would like to call it) has formed. If this move is to continue it should break to the downside and move roughly 1200 points giving us a target of 7200.

Only time will tell ...


Stewie said...

the rallies on these charts look very poor to say the least. that explains the frustration many traders i talk to have had trying to play this bounce. The fact that this 'rally' was hard to play is b/c of the choppy nature of the move. very corrective and this upmove will fail. also, interesting how the NYSE barely moved up, opting to move sideways.

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