Spy Trend Channel

Anyone notice this channel?

 

Saw that as well. Don't really trade it. Use it more as a barometer but noticed it as well. Text book example. Good post.

 

I find that channels are great in hindsight.

 

Looks like price blew through the channel.

 

What a classic breakout gap...textbook!!

 

After a breakout, stock/index tends to go back to the breaout point or trend line to test it again.

Look at the H&S pattern on DIA for example. DIA went below the shoulder line but went back up and blew thought shoulder line.