|Last week's price action demonstrated how quickly momentum stocks can lose favor with traders. However, one or two days of selling does not a trend make. Stepping back and looking at the larger picture the S&P 500 is set up in another ascending base pattern. |
The ascending base pattern seems to be the "norm" in 2014 as this is the third time it has appeared in the S&P 500 this year. The current pattern is not complete until this index stages a breakout above the 1985 level or the index breaks down below the 1952 level.