MDA - Market Direction Analysis Message Board

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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 681.43

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Nov 10 4:00 PM EST

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To: HairBall who wrote (38515)	1/29/2000 11:56:00 AM
From: Jon Tara	Read Replies (1) of 99985

What's more interesting to me is the inverse flag Jan 21-26. I think that traders are so used to seeing drooping flags in this (former) rapidly-rising market, that some may forget to look for the rising flags in what appears to me to now be a down market. Flags are among the most reliable of chart patterns, and only occur accompanied by near-vertical movement. They interrupt the vertical movement, and provide brief periods of consolidation. The flag that formed on Jan 21-26 is the first inverse flag I have seen in this market, and has ominous implications. At minimum, it suggests a repeat of the previous move. (Oops, I lied! I see one Jan 3-6 as well.) More ominous yet is the fact that they often occur in series. That is, you will get a steep move, a flag, another steep move, another flag, etc. They typically come in 2's and 3's. Are these visible on the daily chart? Will have to check.

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