Friday, November 20, 2009

Pullback Pattern

The pattern since the March lows has been for the market to get overbought after rallying, pullback for 2 to 3 days, with most of the losses occurring during the first 2 days of the pullback, and then launching higher again.  The chart below shows the pattern, look closely at the pullbacks, the biggest losses usually occurred on day 2 of the pullback, which would be Friday.  The pattern suggest to get short around the open on Friday and wait for weakness later in the day or on Monday.


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