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Recognize the Charts?

The mystery charts I posted yesterday:

#1 is the weekly chart of Indu from Oct 2007 to March 2009.

#2 is the 10min chart of Indu Yesterday.

Once a distinctive pattern unfolded on the daily or weekly charts;  they tend to keep popping up in intraday charts.  This is the second time such pattern has appeared on the 10-min chart since Feb 5, 2010.

Traders love to play them since they are highly recognizable patterns.  To learn the many intricacies and nuances of such a pattern.

That pattern is the most frequent manifestation of a C-wave down or a C-wave up.  Mostly C-wave downs.

But be careful now.  It's appearance at the top of a 3-months rally (Feb 5 to Present) might as well be a 1st-wave down that precedes a prolonged meltdown instead of a C-wave down correction that supports further rallies.

5min Spx was able to produce a 1-2-3-4-5 rally today.  A weak 1-2-3-4-5 rally that should result in a deep pullback back to 1188/85 area before the presumably follow up rally tomorrow can start.


Good luck.