Hey Ravi, nice work on these charts. I need to do more work on rounding tops to learn what it means for downward price targets. But I find the downward sloping channel you drew in very interesting. My first thought on the channel is that its downward slope is very steep. Usually, to break above an ascending trendline or below a descending trendline (as we have here), it requires are large move on huge volume. Thursday and Friday both a good volume and Thursday's move was large, but I am not sold that a channel break has been confirmed here. In fact, when I look at the SPX chart, I notice a a cruve with an accelertating slope. This type of pattern often produces a bounce with a declerating slope on the way up. It should be interesting to see how the market performs next week. I expect a considerable bounce, and a fulfillment of the WV Pattern on the Weekly. It is difficult for me to see this market breakdown to new lows given the overwhelming bearish sentiment. We shall see how it plays out.

Have a look at this link for a possible Rounding Top and give your views…What are the implicationns of a Rounding Top pattern in terms of the Downside Targets??

http://picasaweb.google.com/rvazarkar/MarketAnalysis/photo#5217343800528402626

Also a Head and Shoulder breakdown looks to have taken place… have a look at this link…

http://picasaweb.google.com/rvazarkar/MarketAnalysis/photo#5217342718076975410