BULL TRAP

Close up charts of BULL TRAP enclosed below

A failed signal is among the most reliable of all chart signals.
When a market fails to follow through in the direction of a chart
signal, it very strongly suggests the possibility of a significant
move in the opposite direction.  For example note how the market abruptly reversed course after breaking out above the early high.  If the upside penetration signal were valid, the market should not  have retreated back to the lower portion of the consolidation and certainly not below its lower boundary,  The fact that such a retracement occurs almost immediately following the breakout  strongly suggests a "BULL TRAP"

Fibonnaci [15-10-2010]

Bloomberg

Oct. 14 (Bloomberg) -- Companies in the U.S. are buying more foreign-made 

semiconductors and cars as they invest in equipment and build stockpiles, 

while also keeping a tight rein on payrolls, reports today showed.

The trade deficit widened 8.8 percent to $46.3 billion in August from 

$42.6 billion the prior month as a rise in imports swamped gains in exports, 

Commerce Department figures showed today in Washington. The number of 

Americans filing claims for jobless benefits unexpectedly climbed by 13,000 to 

462,000 last week, according to the Labor Department.

Elliot Wave TGT [14-10-2010]

Trend Line [13-10-2010]

Trend Line [12-10-2010]

Fibonnaci [11-10-2010]

Fibonnaci [11-10-2010]