If you review this thread you will see that I have stated the TA has not worked for this news ever since the earthquake in Japan. This year has all been about news but TA does give you a heads up to where you may get out before the falling knife or get in during a uptrend. The markets lately follow the news which isn't quite normal. The doom and gloom affect causes panic selling and everone wanting to buy dips to make any profit they can.
There is more and more trading by computers that use charts and graphs from previous market activity to call for a trade or sell. Previous stops and hesitations on the way up tend to be stops and hesitations on the way down. These points are set by the programers for the computers to watch for a bounce and if there isn't one they continue the selling shortly. So the low base is formed. On the way up the same happens and a high base is formed at resistance while they watch for the bounce down. No sell off at a high base means they buy to the next level.
Technical analysis not working this year is why the premiun servies are not as good this year. They have to be interpided more by the manager as to a true sell or buy.
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