ES 10/16/12

The M shaped pattern is commonly called a double top reversal pattern.

I like this:

it is perfectly normal market action for prices on an uptrend to peak at a resistance level a couple of times, retreat, and then resume that uptrend. It is a challenge for the analyst to determine whether the decline from a peak is the indication of the development of a valid double top or simply a temporary setback in the progression of a continuing uptrend.Analysts, therefore, advise cautious investors to wait for the price to fall back and break through the confirmation point before relying on the validity of the pattern. Many experts maintain that an investor should wait for a decisive breakout, confirmed by high volume. Others, like Bulkowski, are not so reliant on high volume at the time of breakout but do agree that the higher the volume at the time of breakout, the further the decline in prices that the pattern will register.

Long term areas:

above

1433.75 1443.75/1444.25 MCLVN, dividing area between balances
1446.75 CLVN
1450 – edge of upper distribution
1453/1456.75 CHVN’s

below

1436 Gap
1432 Yday Nvpoc
1428 HVN

Short term:

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