I've been using the D-J Industrial Average as my barometer for the health of this market. All I can say is, so far, so good. The chart below updates the Dow. Over the last year the Dow has acted well, and it has been riding its 50-day moving average steadily higher. But (there's always a "but") over recent months an interesting little formation has appeared, that you can see on the chart below. I have drawn a blue almost horizontal line connecting two bottoms on this little formation.
And I ask myself, "What do we have here?" I honestly don't know what to make of this little formation, but if the Dow breaks below my blue line, I'm going to be on my toes, particularly since all this is happening within the previously described broadening formation. So let's wait and see what happens.
Another area has caught my eye. The P&F chart below ... Log in or subscribe to continue reading.
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