Wednesday, April 15, 2009

Double Top?

Last Wednesday I reviewed the slowing momentum in the S&P 500. Although it has formed higher pivot highs, the strength has begun to wane a bit. One of the price patterns that occur in a weakening uptrend is a Double Top. Think of a double top as two equal mountain peaks. This pattern helps convey the inability of the Bulls to push the stock above it's prior resistance level. The Dow and Transportation Index are close to forming double tops. A break of support (7750 on DOW) (2760 on TRAN) would confirm and complete the pattern.


Dow:


Transportation Index:Tyler-