Two quick points:
1) I get a kick out of Bespoke Investment Group's simple little charts.
2) Pattern recognition is wired into the human brain. It is a survival mechanism that can kill you.
In markets you have to constantly check to see that you aren't mentally imposing order on a chaotic system.
As Harry Nillson had the Rock Man say to Oblio in his work of genius, "The Point":
""You sees what you want to see, and you hears what you want to hear".
From B.I.G. (June 16).:
At least from a technical perspective, recent market action has put the correction in jeopardy. A nice double bottom (S&P 500) was made right at support from the February lows. And yesterday's rally put the index back above its 200-day moving average and also broke the top end of the downtrend channel that had formed.
The index appears to now have the 50-day moving average in its sight. The correction isn't over until new bull market highs are made, but things sure look much better now than they did a couple weeks ago.