S&P - Broadening Formation

Discussion in 'Technical Analysis' started by circadian, Jul 22, 2009.

  1. Ridiculous.

    There is a TON of asset-allocation going on with managers selling Treasuries and buying equities, or have you not noticed that either?
    #11     Jul 23, 2009
  2. Trading based on volume and volume divergences is a total WASTE OF TIME.

    Traders get paid in PRICE not VOLUME.

    It's almost like someone that is going short because the A/D line is not all that impressive, or there is "light" summer or holiday volume.

    That's a big-time "rookie" mistake.
    Very dangerous!
    #12     Jul 23, 2009
  3. Well, call me a rookie, b/c I hold volume in very high regard, second only to price in my book.

    Updated chart of this broadening formation:
    #13     Jul 23, 2009
  4. Digger


    I think Circadian's observation of a broadening formation is correct. I found this site by doing a search of "broadening top" to see whether my own observation of that formation was valid, as I'm fairly new to technicals. I've been thinking that earnings season derailed the H&S, but that a significant correction is still imminent, maybe around 995. BTW Circadian, what charting software are you using? It looks better than mine!
    #14     Jul 24, 2009
  5. I would suggest going back and looking at other historical charts of the SPX when coming off of a huge low, such as 1982. You will see the same kind of broadening ascending triangle formation. No big deal.
    #15     Jul 24, 2009
  6. ammo


  7. Think or Swim
    #17     Jul 24, 2009
  8. Landis, like I said, I hope that I'm wrong here. I think that this fragile recovery cannot afford to have any crushing blows delivered to the market's confidence. I appreciate your input, and your views. It takes two to trade.
    #18     Jul 24, 2009
  9. The big picture:

    #19     Jul 27, 2009
  10. Could you point it out? I couldn't find it in 1982.

    #20     Jul 31, 2009