Down Town Congestion zones below key market numbers may signal bad news. These reversals first trumpet their presence after a short-term violation of the market number.
Price falls back and turns sideways into a tight consolidation zone.
The rangebound bars print a topping pattern that then fails on high volume. When price drops sharply off whole market numbers, the trader needs to step back and study the next longest trend. Significant reversals at these resistance points may not retrace for months or years. The trend change dynamics reflect the unique crowd that holds positions through each round number series. The trapped longs then trigger a selloff that ends the trend.