DIA and SPY Bear Flag Breaks

23 April 2012

The market is starting off the week, down and with some vigor- futures are down over a 1%. This early selling has caused SPY to dip below its 50 day ema and support at 137.05 but more importantly SPY has broken its bear flag pattern. If the pattern continues SPY’s measured move is to 131.66, after SPY broke the flag at 137.66. A more realistic and safe drop area is the unfilled gap at 132.55. The Dow Jones has a similar pattern, using DIA the bear flag that forms has DIA dropping to 125. The weakness should not be to much of a surprise, since additional weakness in the market is common after NYMO drops below -100.

Join the SharePlanner Splash Zone For Authentic Day-Trading & Swing Trading. Includes Free 7-Day Trial with Chatroom, Text and Email Alerts

Get Ryan's Top Six Trade Setups for Profitable Trading eBook for Free!

Add comment

Name (required)

E-mail (required, but will not display)

Website

Notify me of follow-up comments

Refresh

Send

Cancel

JComments

Our Featured Bloggers represents some of the most in-depth and thought-provoking traders on the web. From Elliot Wave theory and forecasts to swing-trading strategies, and others simply showing you how to trade. You will find numerous options strategies and technical analysis on various equities, ETF's, indices, and futures as there is not shortage of material being offered by these seasoned traders.

Get Ryan's Top Six Trade Setups for Profitable Trading eBook for Free!