On the technical side, charts remain bullish. However, fundamentals are showing signs of weakness.
The Dow has been trading sideways with a slight downward bias. Looking at a daily chart below, the MACD turned bearish last week, but the overall setup in the Dow shows a possible resumption of the rally that closed out 2013. The blue lines below denote the setup of another flag pattern, which is typically viewed as a continuation (in this case bullish) pattern. The last time we saw this formation was on a weekly chart of the Dow (2nd chart below).
Below, on a weekly chart of the Dow, we see the flag setup that indicated further gains could be in store through the end of 2013. That prediction proved accurate. The classic interpretation of flag patterns sets the flag pattern as the midpoint of the move, and estimates the following breakout (if seen) to be roughly the ... 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