That anything should happen
I know where I belong
And nothing's gonna happen
--Tal Bachman
The eyes of many traders are glued to the 'flag' or pennant' pattern forming in the SPX. Among the traders that I follow, it seems that most anticipate an upside resolution to the pattern.
Classic technical analysis says that chance favors resolution the direction of the previously prevailing trend. Yes, we've rallied off the early October lows, suggesting that the prevailing trend is up.
A counter view is that we've been experiencing only a bear market rally since October. A broader time horizon suggests a series of 'lower highs' since spring--in which case the primary trend could be interpreted as down.
In any event, we should get an answer pretty soon...
position in SPX
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1 comment:
Pennant Fever
One and two. The wind and the pitch to Bench. Change—hit in the air to deep right field! Back goes Clemente! At the fence—she's gone! Johnny Bench, who hits almost every home run to left field, hits one to right! The game is tied!
The stretch and the one-one pitch to McRae. In the dirt—it's a wild pitch! Here comes Foster! The Reds win the pennant! Bob Moose throws a wild pitch and the Reds have won the National League Pennant!
~Al Michaels, Game 5 NLCS, 1972
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