The markets screamed higher today following some bullish words from CitiGroup and the likelihood that the uptick rule would be back in place within a month. This market was long overdue for a rally, yet many thought it was long overdue weeks ago. The big question was, how did the charts tell us this was coming with such accuracy. Yesterday, in the Intra Day Stock Chat and in the Research Center video we highlighted some interesting chart patterns that had developed. These chart patterns are some of the keys that each elite trader/investor must learn and use.
The first chart that signed a major move coming as early as today was the Inverse Head and Shoulder Pattern on the SPY daily. A break of that neckline would send this market screaming higher.
The second chart that showed a major move coming today was the 60 minute SPY chart over the last two days. This chart clearly shows an in spirit of BULL FLAG pattern.
The third pattern of interest was the JP Morgan (JPM) daily chart. Please note the trend line hit of major support over the last two days. Note how both Friday and Monday JPM held the trend line and would not break lower. This is clearly telling us elite chart readers an up move of seismic proportions is imminent.
Lastly, we had highlighted the chart of the FAZ in yesterday's Intra Day Stock Chat. A clear Head and Shoulder Pattern had developed. When the neckline was broken, which it was at the gap up open, the market would begin to squeeze as financial stocks rallied hard. This is exactly what happened.
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