Monday, January 31, 2011

Expanding Triangle Ending Diagonal Top

Very bearish topping pattern for Financials - same pattern in the case of $Rifin.  I have drawn in approximately what I am looking for next.

There are currently too many comparing the runup and top in April 2010 to the January 2011 top.  The market has a way of alternating when too many are expecting the same result.  Therefore, notice how I have drawn out a selloff for Financials with a spike next, and then the collapse to follow.  My analysis shows that several other methods are indicating the same result. 

This contrasts greatly with the April 2010 top and May 2010 flashcrash scenario.          

Daily Chart

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