2009-09-01 10:45 pm
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After having flatlined at 1030 or so, we received a definite breakdown today.
Even though I try to not let history be a guide, I just find this coincidence startling:
1. Market forms an ABC pattern in a channel (blue)
2. At the "C" point volume and range contract tremendously and a narrow, tight range is formed (pink)
3. Large breakout at the end of the range
Both times, prices stalled at an importance support/resistance level: before our mega rally, 875 (the infamous level that was so tough to breach), and now the 1020-1030 level (a GS target and a 38.2% fib retracement before the crash)
Today was one of the biggest volume days for SPYs since April.
