Diagram of Downtrend/General Pattern of Lower Lows and Highs––Focus on
Setting Up Sell Clusters
Figure 6-2 is a daily cash S&P chart. The general pattern of this market is
down from the May 2001 high to the September 2001 low. What I mean by
general is that the chart mostly shows a pattern of lower lows and lower
highs. However, there are places on this chart where you have taken out a
prior swing high, even though the overall direction of the market was still
trending downward. Remember to look at the chart with the mind of a
four-year-old!