In an affirmative action rally I use the rules of TA in reverse, so when we see a breakout above a neckline, that is a red flag that the trend is about to reverse. Remember, in today’s world technicians are not gaming anyone. They are being gamed themselves.
At the beginning of the year I thought the neckline on this chart would be broken later in the year. This breakout is nothing like a spike, which would be very bearish. This is still bearish but nothing like it would be if we sailed up like a rocket. I am guessing that the rally will fade off into the close and tomorrow will open tomorrow as if today had never occurred, the nature of affirmative action. It may take a few of these low energy short squeezes before anything happens on the downside, but It will.
