Monday, November 1, 2010

[Chart] Mini Double Top on S&P 500

This looks like the bears last stand before a rest of yearly highs at S&P 1220.

The day's high is akin to what was seen the last time we had a gap up open / surge (wait for it.... last Monday).  S&P 1196 on both days.  Hence we have twin Monday highs and a mini double top.  Traditionally (at some point) the market usually sells off, and a double top is a great formation for it to happen from.  But I am not crossing my fingers.  On the other hand, double top breakouts are usually quite bullish developments so if these intraday levels are cleared, off to the races we go ...although it feels like we've been in a marathon already.

p.s. notice how 3-4 weeks ago everyone was trying to time a selloff?  (not the 1-2 day type - but a real one).  Now, almost no one is doing that.  Again, that *usually* means something but right now it seems like all the rules of a normal functioning market with human emotion and patterns has been tossed out the window.


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