This is a great example of predictive technical analysis. That means language like:
The market just failed a test by breaking down out of the triangle formation, but the technical damage is not serious, and a decline to the 1175 area to clear intermediate-term overbought conditions could be absorbed without major technical damage being done. On the other hand, if the ultra-short-term oversold spikes have produced sufficient internal compression, yesterday’s breakdown could prove to be the final shakeout preceeding a new rally. In any case I view the recent decline as a correction within the rally that began in October.
Trend following is not that. It is reactive technical analysis.
One attempts to predict (impossibly unreliable) price moves and the other reacts to and follows price moves (decades of proof). What will you choose?