Today's upside down dragon was brought to you by the Stanley Cup finals, hopefully won by the Penguins: Best seen on the NDX chart: (perfect math) Height: 13 pts Failure : at 1497 3rd top: 509~510
After a long while, it is showing up again on the 5 days/hourly chart: Math-wise it is perfect: Height : 13 pts Failure : 6 pts at the SMA line 3rd bottom: 13 pts
So let's see how big of a bump or rally we got out of the 880 SPX 3rd bottom: We got a 7 pts bump. Not a rally, just a decent bump. Again, the pattern doesn't predict the size of the rally/bump, only that it will happen.
By the way the recent lows 9 trading days ago were also predicted with the dragon pattern only it presented itself with an aberration. I call something an aberration when the technical pattern for some reasons doesn't play out the way how it is expected. It could be a breaking news or a change in the rules causing it, everything is there, but the pattern diverge, aberrate from the expected version. We had a giant dragon on the daily chart with a Height of 42 points. On July 6th or 7th it should have gone at least a good 10 points higher, getting close to the SMA line at 910, but it didn't. It stopped going up at 898. Nevertheless the pattern played out as it would have done according to expectation and dropped the required 40 points from that never happened SMA line touch to make the 3rd bottom and rallied from there like hell...
We have a formation in progress with 2 possible readings, showing here the first version: 1. Height was 13 pts and Failure at 948 this morning, so 3rd top at 961. 2. Height is the same 13 points, but the 2nd top happened only today at 10 am at the same level as yesterday(957). The new Failure occured later at 951, thus the 3rd top would be at 951+13=964.