Tuesday, March 31, 2009
The breakout and gaps in SDS
All the brownish areas are GAPS! There is one more above in the 112 area and one below in the 66 area. You can see the breakout of the channel down clearly with the huge gap up yesterday. That was some pent up frustration. IMO this is the beginning of a larger formation that will be a pennant leading to lower lows as P2 expands and 1.2 plays out. It is possible that the channel will get back tested, but I am doubting that due to the steepness of the slope. The retracement zone from the last fall and a good target for the top of this 2.1.2 run is 95 to 100 (38.2 is roughly 90).