The Big Repeat Pattern to Plan the Next Swing April 5

Apr 5, 2016: 11:02 AM CST

What can late 2015 tell us about early 2016?  A lot, if the larger price pattern repeats.

Let’s update our pattern recognition skills and plan the future – if the pattern continues as it has done.

As I’ve been highlighting repeatedly and joyfully to Afraid to Trade Members, the market is playing out a “Repeat Pattern” like that of late 2015.

In simple terms, the pattern begins with a large down-swing (collapse), progresses to a “Dead Cat Bounce” rally, moves to a retest of the prior low, and then bursts into a huge, multi-week rally.

We’ve used this pattern as our template ever since the January collapse and the successful “Dead Cat Bounce.”

All has played out nicely in the “Price Pathway” from the pattern.

IF history repeats and IF the pattern continues to guide the market, THEN the next likely swing in the pattern will again be a retracement to the downside.

In November 2015, price pulled back from the 2,120 target level; in 2016 price is pulling back from the 2,070 level.

Whatever other analysis or indicators you’re using, note the pattern, use it as a template, and adapt to the future which could be yet another pullback away from resistance as a potential fifth phase in the pattern begins.

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Corey Rosenbloom, CMT

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2 Responses to “The Big Repeat Pattern to Plan the Next Swing April 5”

  1. Price Pattern Repeats - Says:

    […] By Corey Rosenbloom […]

  2. Planning the Next Market Swing from Advance Decline Breadth | Afraid to Blog Says:

    […] a similar sell-swing and almost identical rally higher (see prior update) takes us back not only to the 18,000 level, but also a similar situation in price and […]