Charting Thursday’s Actions Of The S&P 500 Index

We had lot of intra-day patterns formed today including, an ascending triangle, a descending triangle, a wedge, a double bottom, and flags. Each pattern led to another which is the reason why pattern recognition is so important. If you didn’t know what the chances of a breakout of breakdown was for each pattern, then you’d be SOL and would be trading at the mercy of the market. Patterns foreshadow what is to NOT to come, but what is MOST LIKELY to come.

Thursday was a clear cut day where each pattern did what they were MOST LIKELY to do. After 10 days, we are still in a triangle, but it is a descending one. The support we do have is a major one. Also note that volume is picking up, higher than the last 3-4 days. Make note of support and resistance in the 3-day chart for Friday’s trading.

S&P 500 1-day

S&P 500 3-day

S&P 500 10-day

Posted in Categories: Contributor, External Research, Stocks, USA.

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