Wednesday, July 15, 2009

Heads Up

After INTC reported blowout earnings and its stock price moved up more than 7% in yesterday after hours trading, I was not surprised to see the market pop today. What I was surprised by was the result of the move. Some of the market bearish technical have been cleared and the market direction could be changing once again from today's price actions by the DJIA, SP500, and Nasdaq 100.

Take a look at the following chart pattern.

Does it look familiar? It should if you have been watching the SP500 closely rather than just focus on the highly publicized head & shoulder pattern. This is a flipped chart of the SP500 showing a head & shoulder pattern being formed.

Here is the right-side-up SP500 chart, notice the potential inverted head & shoulder pattern being formed:

Here are the charts for the DJIA and the Nasdaq 100:

The market is full of trickery, so be alert and trade with the market, not against it.

Share It