In this chart the break below the trendline, followed by a retest and failure, signals more downside potential. This bearish pattern, the “cfunt formation,” is named for a medieval sword and suggests that the market will look for support at one or more of several levels below 1685 and possibly below 1680. If you are long, this is a time to tighten your stops or get
out until the trend resumes.
Chart by: William Blount
Commentary by: Vikram Rangala
