Few would have heard of the age old pattern from the classics called the Saucer bottom or top. It is like the Rounding bottom that occurs in the long term on Arithmetic charts. The time period maybe smaller. Saucer like patterns that are observed after a strong rally however are a distribution pattern occurring at the top. I was showing it to my son and he thought it was a smiley. And so it could be. The saucer like curve can be part of a smile. The pattern is a rounding pattern that almost goes to a double top and then gives up.
We are close to the highs retracing 90% of the losses see at the start of the year in the S&P 500 index. The setup exists, this week we will watch for follow up action on this. The Nasdaq and Russel indices that were outperforming recently gave back a lot of their gains on Friday. We may find out if this is the start of something bigger. Wave wise wave 5 for Nasdaq appears done and so is it done for the Russel 2000 index. The time is now