I see i've generated discussion on broadening formations (aka megaphones) which is good. trefoil - thanks for posting the big picture megaphone which for some time has warned what lies ahead. SP500 weekly chart megaphone pattern shows overextended price action hanging in mid air. Chart also shows possible smaller megaphone and rising wedge scenario. Megaphone patterns reflect an unstable market prone to large swings in sentiment.
Stop taking credit for the discourse. It's happening despite you. If you were the cause this conversation would have happened months ago you arrogant and pretentious douche.
When I still followed Prechter, I noticed he made the same mistake of putting too much emphasis on arbitrary patterns and fundamentals, rather than the concrete wave counts (and there can be more than one possible count, in many cases) and minimizing risk. Right before the markets broke out above the prior highs in November, 2010, he exclaimed "don't buy this breakout". Over the next two weeks, he was forced to modify his standing wave analysis to reflect reality. At that point, it became obvious to me that he didn't know what he was doing and was using price patterns, fundamental analysis, and elliot wave to push a bearish bias. I came away with the impression that he can draw the most suckerz to his subscription fees this way.
WOW,...less than 2 hrs and 15 min and already taking credit for the "diamond formation" mentioned in my above post. You realize diamond patterns are FAILED megaphones right?....They are continuation patterns. Are you now amending your bearish stance?
bhardy307, I see you're now motivated to draw megaphone patterns . . . Good to have converted you. http://stockmarket618.wordpress.com
LOL! Alone, these patterns mean squat! I was actually trying to match the multi-year highs and lows with the FED rate. I think this is a more interesting connection. By the way, think a little about that picture I posted - the man sitting backwards on the donkey. It is fitting. More often than not we make asses out of ourselves trying to predict the future based on historical data and patterns. In the meantime, the donkey is in full control, going in whatever direction it wants. Hee Haw! Hee Haw! Hee Haw! Enjoy the ride, GrandSuperAss!
N54_Fan, I've just found your earlier reference to diamond patterns which was posted before mine. But why do you continually refer to them as continuation patterns ie a continuation of the current uptrend. You are mistaken. In this context diamonds are REVERSAL patterns so it's a bearish warning.