Thursday, December 3, 2009

Topping Pattern

What we have seen the last 2 days is intraday trading that is consistent with a broad topping formation.  You get early buying which pushes the indices to new highs, only to fall right back down below the open and trade below the open for most of the day.  This is the 2nd day in a row for this pattern if we close below 1110 on the ES.  This throws a wrench into my topping out on Friday prediction.  I do think we will have intraday weakness on Friday, but it probably won't be the top of this rally.  I will wait to put on my swing short, but I am probably going to get bolder with my daytrading shorts in the coming days.


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