ASCENDING TRIANGLE
This is a recent chart of the S&P on a 60 minute showing some of the most recent action. You can see that prices have been holding a trading range and prices are heading into the apex of the pattern. As this pattern gets tighter a break out of the pattern is inevitable, and depending on the prior action would be bearish or bullish depending on the prior trend. Prices have been in a bearish sell off for some time and this pattern is attempting a recovery. This is normally a bearish pattern because the prior trend was down but a break above the horizontal line of 916-918 with volume would negate that pattern and would be bullish on the short-term.
This is very likely a bearish pattern that should break down very soon (like Monday or Tuesday). Keep in mind that prices may make a last attempt at the 916-918 range before the failure, but the odds are that it breaks down soon. A break of the bottom trend line would be very negative and prices could start a retest of the prior lows.
Patrick Hughes (Gannfann)
http://blog.stockmarketharmony.com
Simple Retracement
I really think that many traders do not fully appreciate or utilize the power of retracements in their every day charting. A retracement is a simple divison of the prior swwing or major swing. Here is a perfect example of the power of correct placement of a retracment and using it with your overall bullish/bearish forecast. In my commentary I had called for prices to hold the 752 range and you can see how this provided a great short entry. Make sure you take advantage of the power of these methods and keeping an eye on the overall forecast and timeframe you are trading.
Gannfann
