Oxen Group Nightly - August 3, 2011 - Stock Market Recap
Oxen Group Nightly - June 14, 2011 - Stock Market Recap
We are still in a triangle and are dangerously close to lower support. In fact, we actually broke the descending triangle on the NASDAQ. It appears that we are still tied within this range and today may be the day that settles it all. What I mean is that we cannot close negative today (down 2%+). If this happens, we face the possibility of the markets declining by another 10% or more.
We had lot of intra-day patterns formed today including, an ascending triangle, a descending triangle, a wedge, a double bottom, and flags. Each pattern led to another which is the reason why pattern recognition is so important. If you didn't know what the chances of a breakout of breakdown was for each pattern, then you'd be SOL and would be trading at the mercy of the market.
During pre-market, you just have a feeling that there will be a forceful gap that will break through everything. Or, if you don't that gut feeling, you can simply look at a 3 or 5-day chart and look at how the open cut through several support levels. Combine that with the fact that the market didn't even attempt to fill the gap, nor did it have any energy to do so within the first 30-mins.