Friday’s chart action suggests the possibility of yet another big triangle alert (also echoed on the Nasdaq Comp/100 and S&P).
The recent sideways price action may well ‘wind up’ into an increasingly tighter pattern as the index looks to make a big break from the range, possibly in reaction to economic data released this week.
Looking at the big picture from further out, the current lower consolidation has marked similarities to the ‘bottoming’ pattern established late Jan/early Feb which preceded a strong (but short lived) surge north……too early to draw firm conclusions (can you ever?!) but as excellent chart work posted recently by OES has also confirmed “if there is a plan we are most definitely sticking to it” ……so far..........
hmmm well not long now to see how it plays out, as we are nudging towards daily long term and weekly long term uptrend support lines, if i was position trading i'd be looking to short 10400, if opinion position trading short @ 10600-700 seems excellent value, target 9900, for assessment of fundamentals 12months forward,(likely to be nervously hopeful, next stop 9000 aug/sep 04) still seems to me that my opinion is saying nothing but a tax cut,plastic fuelled, uncertain "chuck money at it,fingers crossed, but we all suspect deep within that crisis of economy will be revealed upon the unvailing of the golden trojan horse"