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Comedian Rodney Dangerfield made the phrase “I don’t get NO RESPECT” a big part of his comedy act. The “Power of the Pattern” above highlights times TO RESPECT support and resistance. Support/Buying opportunities took place at (2) twice and currently the NYSE is up against a series of resistance lines at (3).
These resistance lines don’t mean the market has to stop on a dime, yet resistance should be respected and protection of values is more often than not a good idea at times like these! With this resistance at hand, keep a close eye on how the hot performers/relative strength leaders of late, perform in the near term!
Speaking of respect…I would respect a breakout if it takes place!