Yesterday's price action was a poke under the lower edge of the congestion pattern seen on the Dow Industrials. It's been a three-month sideways move, so we'll soon see if this is the potential neckline break. How will we know? We are looking for acceleration to the downside to confirm, and the plan will be to step in on the first pause or bounce on the daily chart. We'll measure the pattern later, and for now, we'll see if that was just a little trap for the sellers first.
The S&P 500 Index is the strongest of the broad indexes, still trading inside the apex of the congestion area. We'll see if it is heading down toward the lower edge of the pattern too.
04.03.09 09:17 #