S&P 500 Flagging

Ted

FYI: Heading into August, the S&P 500 had traded in a tight range between 2,050 and 2,125 over the prior six months. After completely breaking down below that range, the index has formed a very clear “flag” pattern. Check it out in the chart of the S&P below. These flag patterns often result in a big move in either direction, and as you can see below, we’re at the end of the flag right now heading into the FOMC announcement on Thursday
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/sp-500-flagging/

Tony

I believe that the pattern is more properly called a pennant. One source:

http://www.investopedia.com/university/charts/charts6.asp

bee

I vote for a "d" flag (pennant) not a "q"

Old_Joe

OK, everyone: salute d flag!

bee

Examining this flag reveals consistent higher lows...finger crossed. As Martha Stewart always says, "This is a good thing."

VintageFreak

What is supposed to be the duration of this big move? Market has been on a long big move until a couple of months back. Every time it went up, it made a higher low right? If it didn't it wouldn't have gone up.

Basically I can look at any "pattern" (sic) and say S&P is making higher lows and that's a good thing. Until it stops making higher lows. Needless to say at that point I will "see" another pattern, that will tell me it is now making lower highs and I will say that's a bad thing.

Rinse, Repeat. WTF?

heezsafe

Chicken bones tossed in the air, landing on a blanket. Mama JuJu, what does the pattern portend?

Old_Joe

Oh ye of little faith...