Thursday, February 28, 2008

Never mind the Triangle

There has been much talk on the charting blogs about "the triangle", which recently broke to the upside. Despite that upside break there is still substantial resistance on the charts. Here are two that I noticed today.

When you add the momo indicators of RSI, CCI and even stochastics you can clearly see a short term market top. The cheerleading media notwithstanding, eventually this weeks round of real news will have to take effect.

disclosure: I own DIA puts.

1 comment:

pythagoruz said...

Nice charts, simple but effective. In my experience the most basic patterns/trend lines are the most useful.

Its pretty clear that there is a mountain of resistance above on all indexes yet there are clearly buyers out there. I really don't get what they could possibly be thinking. What catalyst is going to move the market higher? There is nothing left for the bulls, absolutely nothing.