Friday's dismal job numbers pressured the markets. Despite the lower daily volume, the weak close for the day and the week have left the inverse H&S pattern in peril. Pattern failures usually result in fast moves in the opposite direction so we have to watch for the possibility of a rising wedge (red dotted lines). A lower low on higher volume would confirm the bearish pattern.
Sunday, January 11, 2009
Technical Picture - Bear Market Bounce Under Pressure
Friday's dismal job numbers pressured the markets. Despite the lower daily volume, the weak close for the day and the week have left the inverse H&S pattern in peril. Pattern failures usually result in fast moves in the opposite direction so we have to watch for the possibility of a rising wedge (red dotted lines). A lower low on higher volume would confirm the bearish pattern.
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2 comments:
Thanks for your clear technical analysis and posts. It will be interesting to see what happens this week.
Yeah, lots of pessimism creeping into the market just ahead of earnings season.
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