 Hey everybody its Hari Swaminathan from optiontiger.com and in this video I want to take a slightly longer term approach not slightly actually quite a long term approach to look at what is happening with the indexes and how some of these technical patterns might play out. I think we all get too caught up in the day to day day trading or even the medium term swing trading and we tend to focus on the immediacy of various situations but it helps to step back and take a longer term approach and see what the charts are saying and what we can sort of not forecast but you know what we can look for so that we can understand you know if something's happening then we can put that into perspective. So here is a one year daily chart of the SPX and as you can see we hit a high of 2954. Now here you see back in October September and October of last year we hit the same level. Now if you don't have to worry about the exact levels we are just talking about some zones here we hit this level and then we dropped about 20% and then we've come up to that same level again and then it has retreated. So this is called a double top pattern and generally in between the double top you'll see like a correction a 10 to 20% correction and which is what we've seen here. Now this double top it came right up to that point and it has retreated and now of course in the last few days we are seeing the index climb back up. Now this double top pattern can be a very bearish signal however it remains to be validated in the sense that if you look at from the bottom here the index has made higher highs and higher lows so here all of these are higher highs higher lows higher highs higher lows all the way till here and then it now this low has come exactly to the previous support point. So this support point is holding as of now however what remains to be seen is whether we get a higher high so which means if it goes above 29.54 and goes up to 29.75 then this bearish pattern is invalidated however if the index talks below 29.50 and then comes back down again and if it makes a low low then this double top pattern is holding which means that is going to be a very bearish signal. So why is this important? This is important because we can you know let's go take a longer term approach here and look at the S&P for 20 years and look at a monthly chart here and this is what we see and as you can see in 2000 this was the dot com right there the dot com peaked in 2000 and then right around the same levels was the financial prices and then you can see what happened after that. So basically what I'm saying is if this double top pattern holds right now let me go back to the one year daily chart and if this double top pattern holds which means this rally will stop before it hits 29.50 and if it turns down again and if it breaches this support point as of now this part has not breached but then the next one could breach it and if it breaches this one also then we could be seeing a pretty big drop. So sometimes it helps to take up a longer term look at these things and so that now even in our daily whether it's day trading or swing trading we are looking at these levels and we are also putting it in perspective of a longer term chart. Thank you.