Could this be “it”?
The two charts below on the DJIA – 15 Minutes and Daily. If we look at the real time chart, we see an interesting bounce off Support at 23,400 and a strong Trend Line Break. This is a bullish sign.
The Daily Chart shows something even more interesting. Over the last 3 months, the index has formed a solid expanding triangle, with a base at 23,000 and a consolidation target of 29,000.
So, is the market preparing for a monstrous upside move? Could be. But we don’t have to predict. The stance today is “Bullish” but a break of 23,000 will change this. Conversely, a move through the top of the triangle at about 25,000 would almost surely mean the upside target will be reached.
So current posture “Long” with a reset on a close below 23,000. That’s fairly close to the current level of 23,800 so risk is fairly low.
This market appears to be pricing in a recovery and you can’t argue with it – yet.
