Wall Street's Currnet Pattern???

[BillSimmons]

Wall Street's Currnet Pattern???

Looks like we basically had a sharp down fall, and then a level off the last 9 days, does anyone know if this is a common pattern?

And if so bullish or bearish?

 

[BeginnerJoe]

Falling is always bearish. Unless you are short, then it is bullish (for your account balance that is).

 

[tomorton]

Yes, it's common and bearish. I see a bear flag, which is defined by the fall in prices for the first 2 weeks in May, then a slightly upward price movement over the next few days to a week. We seem now to be breaking down below the low reached on the 23rd. Technical analysis theory suggests that bear flags are usually followed by a downwards break-out and that price will fall as far from the end of the flag as it fell from the high to the start of the flag, and often over a similar time span. This could take the Dow to 11,500-11,800 in the next 2-3 weeks, though we might see another upleg within that time as people buy beaten down stocks, and especially if Europe acts decisively to support Greece, Spain and the Euro.

To best see these patterns and similar, you need a chart showing price bars or, better, candlesticks.