The technical outlook changed dramatically - oscillators have made higher high and we can see positive divergence now. Todays rally was accompanied with huge volume with is good sign as well.
Nevertheless, the last high (ca.38000) has not been broken yet (price is still in error margin) and there was no buy signal generated today. Therefore, our descending triangle formation has not been negated yet.
However, tomorrow's high open would generate buy signal and negate bearish formation. We might also consider double bottom formation then (with target ca.40700, hourly chart):
However, I believe we should place our buy orders only when current high is taken.
More troubles for banks ahead (here).
Note from 2009/09/23:
It seems today's open was quite high (it's ca.38700 now). Therefore, the descending triangle formation has been negated and buy signal has been generated.
Sources:
[http://seekingalpha.com/article/162634-more-trouble-brewing-for-banking-sector]
[http://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:chart_patterns:descending_triangle]
[http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:double_bottom_revers]
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