Tuesday, April 21, 2009

bear market rallies

reading through my BIBLE of technical analysis ( Technical Analysis of Stock Trends - Edwards and Magee)...

"Rising wedge typifies a situation which is growing progressively weaker in the technical sense"

"Once prices break out of a wedge downside, they USUALLY waste little time in retracing ALL of the ground gained within the wedge itself and sometimes more."

"Rising wedges are common in bear market rallies"

So yesterday we had the "break" of the wedge formation...the rally started well but since 23rd March the move up has been overlapping....look at previous bear flags/wedges..

SO looks like we retrace a good portion of the rally from march 9th lows IF NOT ALL and maybe more...

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