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TheStreet Open House

Are Markets Ready to Catapult Higher? This Technical Pattern Says Yes: StockTwits

NEW YORK (TheStreet) -- Last week, had you searched Google News for "Stocks Crash," you would have received over 16,000 results. At that time the S&P 500 was barely down 1% year-to-date. Granted, some momentum names were falling 10% or more, but there was still plenty of strength throughout the market.

It was hardly a market crash.

The largest exchange-traded fund for utilities, the Utilities Select Sector SPDR (XLU), is now up about 12% this year. The largest energy sector ETF, the Energy Select Sector SPDR  (XLE), is up 5%.

There are still plenty of stocks rising despite some of the worrisome headlines and negative sentiment that emerged over the last few weeks. Even more importantly, today the S&P 500 once again flipped green for the year. It's now up a little more than 1% since 2014 started.

Could this be the start of a major uptrend?

On StockTwits, a cashtagger shared a fantastic chart that suggests that it could. It shows a technical pattern that cannot be ignored. In February, a very similar sell-off occurred and its v-shaped pattern is nearly identical to the drop that happened over the last few weeks.

If you believe the market has a memory, and that patterns of the past do indeed hold some predictive power, then this chart is a must-see:

Looking more and more like Feb 2014 $SPY $SPX $ES_F http://stks.co/f0Vw3 -- vader (@vader7x) Apr. 17 at 01:15 PM

If you enjoyed this article you can follow the author on Twitter and StockTwits.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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