Shakeout

After a few down weeks and breaking the highly publicized SP500 head & shoulder pattern, the market did a bit of shakeout today by gaining more than 2%. Today's shakeout took out some of the bears that went short on the break of the H&S pattern. For those seasoned market technicians, they are all aware a retracement will occur whenever a pattern is broken and they will wait for the retracement to enter. More importantly, the probability of a failed pattern when one of those highly recognizable patterns is broken is high (especially when all the talking heads are balking about it.) Does it mean after today's performance, the market is on an uptrend? No, not until it has taken out the lower highs and lower lows by forming higher highs and higher lows.







For me, earnings report will officially start tomorrow when GS put out the numbers before the market tomorrow. Here are the charts for the three tech stocks that will be reporting their earnings this week: IBM, INTC, and GOOG.