We are consolidating in a symmetrical triangle, meaning, we aren't going anywhere for a a few days. This pattern has a 50/50 chance of both breakout of breakdown which is the reason why I'm staying in cash at least for now. Today was interesting however. The materials/industrials sectors displayed strength and formed double bottoms, but hit major resistance at their prior short-term highs. It was a good day to be long and short and another reason why you must either sit in front of the computer all day or place stops.
DJIA (INDU) - 1-Day Chart
Here's a close-up (10-day Chart):
Don't forget to try out the Free Trend Analysis. It's FREE, so give it a shot!
2 comments:
love those charts. that's exactly what i am seeing out there. lots and i mean LOTS of folks gonna get caught off guard on this one. nice chart work.
Thanks!
You are right. Only the informed will be safe and perhaps make a killing next week.
-JL
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