Under normal market conditions, this pennant break-out would be considered very bullish. If this was a normal market, I would now think this would head up to at least retest the all-time highs. However, this is not a normal market - it is news driven in my opinion.
News broke last night that China and the USA would resume talks in October. The market loved this, and futures rose sharply. But, have talks ever stopped in the last year and a half? No, they haven't. The two countries have continued negotiations this entire time... but nobody seems to be thinking of that today. This to me is proof of a news driven market. Therefore, break-outs like this one cannot be trusted. Just my opinion...
News broke last night that China and the USA would resume talks in October. The market loved this, and futures rose sharply. But, have talks ever stopped in the last year and a half? No, they haven't. The two countries have continued negotiations this entire time... but nobody seems to be thinking of that today. This to me is proof of a news driven market. Therefore, break-outs like this one cannot be trusted. Just my opinion...