I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Thursday, December 17, 2009

Wedgies! At Least They're Not Swirlies ..... Wait That Comes Next

I was showing in my Tuesday Post Cabin Boy the sideways wedge breakout on the SPX (actually the chart was SPY) and remarking that a similar pattern was in play on the HSI, with breakdowns already occurring on the HSI.

Here are my charts and notes from Tuesday:

I was just taking a look at my trendline chart and the large wedge since the bottom has been broken. But the break sideways itself is forming another wedge

Large wedge break sideways into another wedge .... hmmmm, that seems familiar. Where have I seen that before? .... oh yeah!, here it is :

Boy that's a pretty chart. That doesn't look at all unhealthy or doesn't make me want to vomit all over my desk. A chart like that makes me want to go long with lots of margin. I can sleep well at night knowing I'm invested in a chart like that.

Am I serious? No!! it's called "Acting!!!"

Good luck buying all those dips.

Well, that was so much fun, I decided to throw in a few more :)

So for those of you who believe that the large wedges were fake, and that the proof is that we didn't have a violent breakdown: observe that the next formation is itself a wedge.

.... And if middle school memories serve me correctly, Swirlies come after Wedgies. Down, down, down into the toilet

(binv quietly sobs at his keyboard confronting repressed memories of the US public school system)
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