Spent a couple of days this past weekend working and enjoying the Balloon Fiesta in Albuquerque, New Mexico. If you have never been, it is well worth the trip! One of the balloons reminded me of a pattern the S&P 500 index has created of late. See Below!
As I shared in the chart, these patterns tend to frustrate both bulls and bears, due to the lack of direction. Flag patterns will end and when they finally do, the move is usually a huge one. These patterns require patience and time to complete. Follow the breakout when it takes place!
Why have I encouraged investors to own the Emerging markets and Brazil (EEM & EWZ)? See Early Bird Post. Both continue to push slowly higher and are not struggling with a pattern like this.