The bullish flag worked

It seems we were SPOT ON with our previous post today. Patience paid off.

The market had thrown a bullish flag pattern, which is obviously bullish, and the S&P finally did break out of this flag and took off to the upside.

You have to take your hat off to technical analysis and this was almost text book. 3-4 day bullish flags work the best with the indicies, and we would not be surprised to see the market go a higher obviously.

The tick reading below is at +175 and still has some room on the upside too.

WHAT IF YOU KNEW WHICH WAY THE MARKET WAS ABOUT TO MOVE BEFORE IT HAPPENED?  CLICK HERE To Join Our VIP ELITE GROUP  -- FREE 10 Day Trial Offer Today! 

Nasdaq Hourly Chart

Nasdaq Hourly Chart

Today we posted an update HERE on the nasdaq chart. We made some notes on how the nasdaq the last few days, has been doing nothing more than just coiling or in a low range tight price pattern and working out where it wants to go next.

If we have a look at the HOURLY Nasdaq chart, we can see that the very quick upwards rally has left a gap on the chart. This is highly unusual and we must warn you that these gaps do eventually close, sooner or later.

For now, however, since the 3rd of January we have topped and just going sideways, however on the nasdaq chart   the nasdaq seems to have found a bit of support, and we are oversold on the hourly, which means that in the next few days it is probable we will see some sort of bounce, and even a break out to the upside, depending on how strong the bulls feel.

Nasdaq Hourly Chart

WHAT IF YOU KNEW WHICH WAY THE MARKET WAS ABOUT TO MOVE BEFORE IT HAPPENED?  CLICK HERE To Join Our VIP ELITE GROUP  -- FREE 10 Day Trial Offer Today!