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

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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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