Loading ...SPX is making an announcement through a Megaphone topping pattern. Now hear this! “I am setting my sights on point 5 of an Edwards & Magee style Megaphone/Expanding Top/Reverse Symmetrical Triangle pattern.”
The common interpretation of a Megaphone is as a reversal pattern, just as its opposite, a Symmetrical Triangle, is a continuation pattern.
I have only seen this current specimen in one place illustrated by one man who stares at charts. It is not linked because it was provided privately. There may be more alert men who stare at charts out there seeing a Megaphone, but I’ve only noted one (and I have not had much time to scour the internet looking).
Anyway, with all due caveats about how we Men Who Stare at Charts…
But the Megaphone, complete with its 5 points is viable. A couple things…
Thing 1: There are no certainties in TA. These patterns sometimes fail to reverse, instead proving to be continuation patterns. Just as a Symmetrical Triangle is usually a continuation a broadening top Megaphone is usually a reversal pattern.
So there could be a fair amount of bullish and a big chunk of bearish in the view over the next 6 months. [edit] Pending the top-test, obviously.
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