This formation occurs at a top and  usually signals an end to a long-term bull market; however, it has been known to occur on shorter trends as well.  In general, the market makes a top and sells off to a support level and then begins to rally again only this time it does not make new highs and rolls over taking out support.  It then corrects at least 50% of the last leg of the bull market. 

Extra Point....** There is whole theory on Kondratieff which I do not agree with.  I think the theory is out-dated with all of the economic controls and technology of today; however, I do think his theory of commodity waves has value and the formation above is a common one in commodity trading.