Over the past couple of months, the Dow Jones Index could be forming a descending triangle pattern, which two-thirds of the time leads to lower prices. The declines of late have the Dow testing support of this pattern, where a “short-term rally is due!”
If it is forming a descending triangle pattern, a short-term bounce could start at any time!.
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The declines of late have the Dow testing support and support is support until broken. This support line could be the bottom of a bearish descending triangle pattern.
Joe Friday Just The Facts Ma’am…If this read is correct and the Dow breaks support line (2), the measured move suggests the Dow could reach the 21,500 zone.
Bulls want to see the Dow rally and break falling resistance to negate this potential pattern! Friends, the next couple of weeks should be interesting.