Today i saw sustained selling pressure in AIG, to me the chart said it all. The chart on the left has key breakdown points highlighted with red circles. Inside each red circle there is a breakdown candle with volume confirmation. A lot of my trade set ups come from pattern recognition, either on the macro(daily chart) or micro scale (5 min chart).
Descending triangles are always bearish unless they fail breaking to the upside. Reading the price action associated with sell offs is a puzzle piece to success. IF most of the price action is doing business on the bid, you know the selling is sustained, especially on support points. I think the party is getting old at AIG and people are getting scared, today was probably retail slowly selling. Think about the pyschology behind the trade… AIG was everyones golden goose .. AIG will have its day again, but not when you see the PPS dripping out of triangles.