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Tuesday, December 1, 2009

The DOW Expanding Triangle


I updated the daily update to show this chart, but the pattern is potentially awesome so I gave it its own post. Thanks Kevy and Saboya for reminding me of it. Yes the SPX and COMP would not really fit so much this pattern (yet anyway) but they might be in some kind of ABC - X - ABC corrective.

So this expanding diagonal pattern gives the bears hope at least for one nice bear move down. But beware if it is an expanding triangle, it will reverse at the [e] wave low. And to qualify as an expanding triangle, the [e] wave should be making a lower low under the [c] wave. An [e] wave should be in the form of a 5-3-5 zigzag which is an ABC move or "three".

So again in review, one more push up would count perhaps as a Minute [i] peak and not this expanding diagonal pattern.

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