Diamonds are so rare! Not....

Couple of days ago i watched as one of these rare diamond formations more seen on forex charts, formed on the SPX daily and broke to the upside. A similiar pattern now appears once again and if the structure of the last one is anything to go by, this one is the opposite. For this to go through on the down side i would like to see a test of approx 1001.42 followed by some selling which breaches the trend line from yesterdays bottom (994 ish today) and fills in the gap from the 3rd Aug at approx 888.43 .
However if this market gets to 1007, we all know what that means.....

End of the run for the S&P 500? ($spx, $spy)

Expandable picture ( http://twitpic.com/b1efy )

A couple of days ago i watched a video by Brian Shannon @alphatrends in which he asked viewers to step back and look at the larger time frames. And that is just what i did.
In the last week the technicians have obsessed with the Head and Shoulders pattern on the S&P 500 which didnt break down. A lot of commentators, see this as a bullish move, however if we look at the S&P 500 since Jan 2007, we can see that the index was in a channel between the line A (tested 4 times on the upside) and B (tested 5 times on the bottom) and C (spike bottom: tested by 3 spikes). This channel that held for 14 months finally broke down in October 2008. Although there is much optimism about the current levels of the S&P500 currently at 951.13, we havent even pushed up into this channel. I assume according to the line C there would be stiff resistance at 952.50 and even tougher resistance at line B at 985 ish. And if my charting doesn't spook you about where the S&P is trading then maybe the solar eclipse this coming Wednesday will.
http://news.yahoo.com/s/afp/20090720/ts_afp/scienceastronomyeclipseasiatourismsuperstition_20090720054915

Would love the hear the opinion of other traders out there especially those who trade patterns off channels.
Cheers!
JRod

Blogging! here I come

ive been on Facebook for what seems like a lifetime and never saw the reason for twitter or a blog. But my usage of twitter in the last few days has changed that opinion and so blogging here i come.
For the last year ive been posting stuff on the state of the financial markets on facebook.. visible to most of my friends who dont really care about the markets.. so i guess the public forum is the way to go.......