Tuesday, April 3, 2007

The Indexes Are Forming Lots of Cup and Handles

A Cup and handle formation is a moderately common chart pattern. It's a combination of a rounding bottom and an ascending triangle pattern.

The SPYs, QQQQs and IWNs have all formed a cup and handle pattern since the China sell-off a few weeks ago.

In addition, all of the averages are still trading below the technically important price level from the start of the China sell-off.

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