Our directionless markets continue to waver as the Dow and Transports trace out ominous formations. Over the last two months both averages have made a series of higher highs and lower lows. While not necessarily bullish or bearish, the price swings in the charts below speak to the bipolarity of the current market. This has to do with the unique macro-environment we're in, where a very plausible assertion can be made about multiple market scenarios. In other words, there is a lot of evidence suggesting asset prices should deflate, and a lot of evidence suggesting they could move higher.
Last week's bounce has elicited positive bullish crossovers in both indexes below, but already those gains appear to be losing momentum.
Below are weekly charts of the averages which show the consolidation in better context. The Dow is stuck between 16,000 and 16,500 and still has yet to push past the closing high set ... Log in or subscribe to continue reading.
Premium Content Notification
A subscription is necessary to access premium content.
Please use the button below to subscribe in order to access all premium articles