Short Term Flag Ready To Push Dow & SPX Up 2.25%

By Christopher Diodato

Hey short term traders, it looks like the market is gearing for another breakout.  We have been in a consolidation (while the rest of the world has been declining) since Bernanke's announcement of QE3.  Now, it looks like the market, with renewed passion, is making another push to break through the resistance level at 1465 on the SPX and 13,660 on the Dow.  This is a "flag" formation.  To trade this breakout, set a stop order slightly above the resistance level and once filled, ride the breakout to the target of 13,925.  Wise traders will take their profits slightly before the target is hit (don't get greedy)!

You can access the picture of the formation by clicking here.

Happy trading!

Metrotrader (D) is one of the few practicing CMTs (Chartered Market Technicians) in the United States . The CMT certifies his knowledge of market timing and risk management approaches. He tends to look for broad market moves and take advantage of them with index funds. The strategy he principally uses is mostly quantitative, and, tested, and has avoided or capitalized on every major recession since the 1940s. He says the best way to make money is to avoid losing it in the first place.

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