Dear fellow technician, this thread is for YOU. The next time some random walking idiot tries to rain on your efforts to find a technical edge while talking down to you like you're a small child, just direct his arrogant ass to this thread. Maybe it's not too late for *him* to learn something. I never thought it would be this evident, given all the preaching about "proof" that the markets are random. Guess what? It's all BULLSHIT! I just ran a little robust statistical tool called the runs test that was specifically designed to test a sequence for randomness. First I collected 10 years of data on the S&P 500, from Jan 2 1998 to Dec 31 2007, from yahoo. The results are: 2,514 data points 2,513 daily price changes 1,315 ups 1,197 downs 1 zero (ignored) 1,332 run sequences Applying the runs test yields a z-score of 3.111. The chances of that z-score coming from a random sequence of ups and downs is ONE OUT OF 1,073 ! I got your coin-flip "chart" right here, random walkers.