Variation of FTSE Double Top pattern from last year March 2008. Published in "The Technical Analyst" (UK) magazine (June 2008) Regards, Suri
From OP: "Of course this is long term analysis for position trading. Daytrading and swing trading will be business as usual."
No, but patterns are patterns because they occur frequently and meaningfully. They represent market behavior that should not be ignored. They represent market behavior that suggests where the market is most likely, even if not certainly, to go next. Ignore patterns at your own peril.
This level held again. IF, IF there is going to be a technical bounce or bear market rally, this seems like a good level for it to occur. If so, first target is 800. Second target is 1000 (or 200 day MA).
Was a good week. Looks like the street was watching that 681 level as well. I dumped all my puts last week except for the ones purchased to hedge long positions. If the chart shows follow through next week I'll be looking to take some profits at the 800 level and let the rest ride for a test of 1000. Until next week
Took some long positions off the table today when S&P touched 800. Bought some puts to hedge the profits in the remaining long positions just in case the 800 level resistance stops this Bear Market rally.