On 5/14/2011 the 6-pack below was posted, as the “Power of the Pattern” was reflecting - multi-year bearish rising wedges were taking place around the world and rising wedges two-thirds of the time results in lower prices (see 5/14 post here) .

The pattern concerns 11 months ago were….Rising wedges were taking place around the world and if one support line broke, they should all fall like dominoes, since correlation was so high.


Below is an update to the above 6-pack, reflecting investment results and current pattern updates.


Since the collection of rising wedges took place, the S&P 500 is up 6%, the Russell is up .5% and the remaining four are all 7% or more below the tops of their wedges, creating a series of lower highs at falling resistance lines.

11 days after the first 6 pack was shared, the Shanghai Index (the sole chart creating a flag/pennant pattern) was breaking below its flag pattern in the chart below posted on 5/25/11 (see post here)


The Shanghai index is the weakest of the lot, currently 22% lower than the day it broke supporr in the flag pattner on 5/14/2011.  No doubt global markets have been weaker than the major markets in the States.

The up-to-date 6-pack reflects the following….  The world does not look exactly the same as it did on the 5/14/2011 post, due to the global markets are lower than their wedge peaks of last year.  The S&P 500 and the Russell are up against resistance lines that should be respected as the global markets continue to create a series of lower highs.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past