Is that a double top formation for Dow, Nas, and SP? Shit.. I should have sold out today. Oh well, Black monday anyone.. Daily view.. http://stockcharts.com/charts/gallery.html?$SPX http://stockcharts.com/charts/gallery.html?$INDU http://stockcharts.com/charts/gallery.html?$NYA
trading is more evolved, then that, in that past that formation may have led to rampant selling, but informational awareness, and market evolution has moved the large money pools from taking advantage of it from others blindly selling based on that technical formation. theres a double bottom, also in SPX, its 150 range. So price discovery based on the longer term trend will create a wedge.
Based on your chart it's a flag and this is a consolidation run hence we will continue with our advance to new highs.. WOOHOO...
a wedge doesn't necessarily mean the breakout occurs to the upside, it means price will coil and money will recyle itself within that range. Since conflicting market dynamics swing the prices to the borders of the wedge. Basically the bid/offer is removed in the middle of the range, and price jumps to the otherside quickly. It buys time for a significant move.
Double top could well be forming, but it does need to be confirmed when/if reaction low is broken and price remains under that support to become resistance. My take on this: http://www.elitetrader.com/vb/showthread.php?s=&postid=1508954#post1508954