Mike Harris is technician and chart-follower, his blog is called the Price Action Lab. I frequently link to his work because the charts are easy to read and his prose is short and sweet. Harris has committed a grave heresy against the Church of the MTA (Market Technicians Association) – admitting that technical analysis has become less and less useful in the presence of robots at this juncture.
The Church and its adherents will not look kindly upon this. I know these guys, they are every bit as dogmatic as the Value Investor faithful whose methods were rendered equally useless by the low PEs of 2007…
Surrounded by robots he knew the end was near. One chartist against 1,000 HFT robots. One man trying to predict the future against 1,000 robots that create the future. He pulled out his last chart and he looked at it again a few times. He had to be right this time around in the name of all chartists who have fallen in the line of duty. He opened the chart analysis book written in 1929 and he looked at the pattern in the stock of Horse Food Packers International. The book said that this is a bearish pattern. This looked identical to the current pattern in SPY. He made his call. He knew that this was his last chance.