Below is a series of charts that display the trading day on or before the harvest moon. The 2008 harvest moon indicated a reversal in a channel, as it came to test the lower end, bounce, and then set up for a perfect sell into a 30% decline in the S&P 500 E-mini future. The 2009 harvest moon confirmed a textbook trend-line; which from the anchor point lead to many higher lows. In 2010, it was a strong confirmation candle, overtaking the prior day’s high, into a strong trending market with little pullback. And finally the last harvest moon, in 2011, was in a consolidation pattern bottom, during the USA debt downgrade fiasco last summer, but did serve a significant low, both in line with others and at horizontal support, reversing price up and throwing it 6% higher within a few days.
It is obvious that this is a significant event in technical analysis, but it is vital to be aware with current patterns prevailing in the chart.
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