Channel Surfing: April 17, 2012

The analog I first posted about on the 9th [see: Analog Details] has performed well this past week.  Given the overnight action in the futures, it’s about to get a boost in the right direction.

A perfectly formed H&S pattern would mean a right shoulder in the 1400 range.  Though, as we pointed out yesterday, we already have enough of a right shoulder to matter.

For anyone interested, I posted Part 2 of Why Do Analogs Work? yesterday.  It details the 2011 as 2007/8 analog, and delves into the numerous chart patterns, fan lines, regression channels and harmonic patterns that took us from May to July of last year.

It’s a decent guide to how these various patterns interacted and combined to generate a top, and subsequent fall — helpful hints for times like these.

Stay tuned.

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