Market TAO Thurs 7-23-09

ES Futures overnight gave us this Pattern…. an Ending Diagonal …..a Reversal Pattern.

These appear at the end of a very strong rally signaling a reversal.

It’s not finished yet . Typically these patterns end with a spike over throw to the top and then fail that could happen today or tomorrow.

Still have my PUTS on from 2 days ago and will add more at the top op the spike…..use a tight stop because as crazy as this market has been it could just keep on going up forever! 😛

Apparently Mr Market decided this was an Ascending Triangle and we got a Big Breakout. 😮

Usually a Triangle is a Wave 4 Structure and and the top of the wave 5 happens very fast.

It looks like this maybe the end of wave 5 .

Now we should see an ABC Retracement down to the Apex of the Triangle

[tags]ABC Retracement, Ascending Triangle, Breakout, Ending Diagonal, es futures, reversal patterns, Triangle, Wave 4[/tags]