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That rare diamond pattern that I flagged for your here last week is proving true. As I noted in the title of that post, it is the location of the diamond pattern that matters. If it comes in the midst of a trendless market, it should probably be discarded. After a sustained uptrend, it is a reason for caution, especially when confirmed. If it comes after a market crash, like last week, then you should be on watch for an upside reversal, which is exactly what we have seen. Remember, the psychology behind the pattern is that one side is slowly but surely wrestling away the initiative from the other side–In this case, the bulls from the bears.
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