John Melloy, CNBC’s investing editor, discusses the Mega Phone pattern in this Video and goes into more detail in an article he wrote (see here).
The one things that continues to get my attention is this….The Dow created the second largest monthly bullish wick in the past 10-years, last month at the top of the megaphone pattern.
When did “THE” largest monthly bullish wick in the past 10-years take place? At the bottom of the megaphone pattern in 2009! (see post here)
This pattern remains bullish for the Dow as long as it remains ABOVE the top of the pattern, which is now a long-term support line.
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