After spending hours pouring over charts this evening, I find it hard to believe what my eyes have seen. Despite the downdraft in the indices today, there are over 6 times more bullish PnF chart patterns than bearish PnF chart patterns—a divergence from what the indices told us.
This data is taken from over 4,100 stocks. The most prevalent and persistent pattern is the double top breakout. Over 2,300 stocks are exhibiting that pattern. In contrast, only 450 stocks exhibited a double bottom breakdown pattern.
As far as new bullish/bearish pattern breaks intraday, there were 44 new bullish breakouts and 63 new bearish breakdowns. Hardly an “end of the rally” alarm.
Take away: this market is still showing broad-based bullish strength.
Bulls not shaken by today, just stirred.
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