Last week I posted a chart on gasoline that showed we could be in a topping pattern, as part of the risk off trade. After putting in a right shoulder last week gasoline broke the neckline on Monday. There is also a much bigger pattern in play here as well and that is the big double top. The previous top was made just over a year ago last May. There is a good chance that the price of gasoline could fall pretty fast as the rally leading into this most recent top didn’t form much in the way of any consolidation patterns. So when the price starts to move down there aren’t many shelves of support to help stem the decline. I call this reverse symmetry. How it went up is probably how it will come down. Also notice the huge gap just below the neckline. This is an important chart for the risk off trade IMHO.

Its the moment of truth for PCLN as it’s now doing the backtest to the neckline. This is a low risk entry point if one wanted to buy some put options using the neckline as your line in the sand.

PCLN broke down from a H&S top reversal pattern today. The reasons I’m showing you this stock is so you can see what a real strong uptrend looks like. Note the red bullish rising wedges and a bullish rising flag. They are all pointing up instead of down. In a normal move the little red patterns would point down. This chart says the parabolic move is now over and a hard fast move lower should now develop. APPL also broke down today.