Well, it has been a week plus since my last post on Dow Jones Industrial Average and S&P500. My last post was the Dow Jones Index and S&P500 broke the 61.8% Fibonacci level. It was extremely bearish and the market was like a snowball rolling downward.
Finally, the market has calmed down a bit and it is hovering sideway for the past 1 week, still having high volatility though.
I have just observed some special formation on Dow Jones Industrial Average, S&P500 and Nasdaq now!
Triangle Formation on Dow Jones Industrial Average
I am seeing a triangle formation on Dow Jones Industrial Average. A triangle is a consolidation pattern, meaning the market is taking a rest before deciding which way to go. A break up of a triangle can be a bullish signal that market is ready to move up, on the other hand, a break down of a triangle is bearish.
So, where is the Dow Jones Industrial Average going? I don’t know, we just need to keep an eye on it and see which way does it break out at the triangle.
Dow Jones Industrial Average Triangle Formation
Triangle Formation on S&P500 and Nasdaq
Similarly, I am seeing the same consolidation triangle pattern on S&P500 and Nasdaq as well. So, it shows that the US markets is digesting the rescue plan before deciding which the market will move. There are also news recently from Fed chief Bernanke suggesting a new wave of rescue plan to save the market, there seems to have some bad news ahead.
Be care if you are active in the market!
S&P500 Triangle Formation
Nasdaq Triangle Formation
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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