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The Power of the Pattern has been sharing with members for months, that what the DAX Index in Germany and Bio-Tech does, has a large impact, on the broad markets in the states. The chart above looks at the DAX index over the past few years. The DAX remains inside of a 5-year rising channel. At the same time is dealing with 5-month falling resistance at the red arrow above.
This week the DAX looks to be putting in a rather “large bearish reversal pattern” up against falling resistance.
Three weeks ago Joe Friday shared that high flying and falling Valeant Pharma (VRX), was hitting five support lines, with oversold momentum. (See post here) VRX gained 30% in the following three weeks following that post.
What its doing this week looks to be very important in the chart below.
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VRX rallied 30% off support in just three weeks. The strong rally hit steep falling resistance this week and VRX looks to be creating a bearish reversal pattern at resistance.
Joe Friday, just the facts…Leaders, DAX and VRX both look to be creating reversal patterns this week at falling resistance. If these two continue to act weak, it should influence the broad markets in the states.
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