Ascending Triangle forming on the DOW?

Another potential bullish pattern is emerging; ascending triangle. This time on the INDU. If it comes to fruit; it targets 16,700.

ascending triangle 03242014

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7 thoughts on “Ascending Triangle forming on the DOW?

  1. what a mess. Looks like the NAZ might be close to being done on the downside? Down Volume was heavy yesterday and on the 21st, but it does not feel like capitulation.
    TRIN was decent, not extreme, Put/Call ratio decent, not extreme.
    3 waves down on the ES?? DOW need to overcome 16,450, it has been such a key level. I got caught yesterday anticipating the breakout 😦
    and TLT is exploding
    All that said, i sense allot of bearishness.

    • Totally agree. Total mess. I can’t make soup of it, except that the recent 1883.97 high was for certain a b-wave high at some degree and this implies that higher highs will come sooner or later as there is thus an incomplete wave structure to the upside.

      SPX/DOW have gotten nowhere in almost a month while the COMPQ/NDX are getting seriously OS… when these later to decide they’re OS enough, SPX/DOW will follow suite in the next wave up or bounce.

      100-point bull-flag on the SPX still in play. Ascending triangle, which was at a shorter time-frame, on the DOW negated.

      Still no key-levels broken either up or down. But apparently many are short… that eventually will mean one thing: it’s going up ’cause the market likes to reward nobody…

  2. And another. Uhg. But the DOW is challenging the trend line drawn off the Dec 31 & Mar 7 tops. 16,450 needs to be taken on a close above it and maybe we have ascension?

    • yup, agree. I am still seeing an ascending triangle developing, with the ascending lower line connecting the march 14 low, march 19 low, and march 24 low. It rises through 16,300 by COB today…. that’s the line in the sand IMHO. Many (tech) stocks are very OS imho… but can always become insanely OS… panic happens in OS not in OB…

  3. another “sell the opening” and what I call train tracks on the hourly. NAZ closed below it’s 2 month structure. I’m flat.

  4. Hi Soul, tough market. The ascending triangle might be right, but the last two openings were brutal. The boyz seemed to have baited with a gap-n-go type opening only to sell into it. Does it seem like distribution to you? Huge volume on the openings. NYSI trending lower, and the leaders – NAZ, NDQ – leading the charge. The diagonal from Feb lows is broken on SPX and NAZ broke through support today….But the Fed is still in the market. I realize I am just babbling here, would like to hear your thoughts.

    • VERY tough market for sure. I am not much of a volume tracker, but on a daily basis volume is still not really picking up and it has been descending since the 2009 and 2011 low. Big boys often sell most of their positions when 3rd waves are about to finish; retail investor will then generate the 5th wave, which is where the big boys sell their remaining positions too. They’ve made their money already and can’t be bothered with another incremental new high. I am not sure if they’ll go short then too.

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