Wednesday, July 11, 2007
Of course nothing with technical analysis is cut-and-dry. One must wait for confirmation (hindsight really) to say for sure if a pattern was what you thought. And it could be that in my technical analysis adolescence I'm missing a key factor that could discredit my observation. At any rate...In question is the S&P500 daily chart and what looks (to me, the not so trained eye) like a Triple Top formation. What has taken shape are 3 peaks that approximate each other in price. There's also lower volume on the 3 peaks with increasing volume at the break-downs. Triple Top confirmation would come with a close below the support level at the two valley points around 1485-87 range (preferably a close under this level on high volume). Of course, I could be completely wrong and we could see a huge bullish engulfing candle that bounces off its trendline, and takes out the previous three highs, in which case hindsight would have proven my observation incorrect (though that could set things up for a head-n-shoulders pattern).
It's all about the Nasdaq at this point anyway, right?