Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Friday, December 25, 2015

DOW Testing 7-Year Uphill Channel

While the DOW is still maintaining a 7-month downhill channel (shown in red in the upper chart below), it has been testing the make or break lower line of its 7-year uphill blue line channel over the past two months.  We all know what happened when it slipped out of that channel back in late August and the powers that be are determined that the DOW will hold that line this time.  If it slips through again however, the odds are likely that it will drop to the lower line of the 7-month red line downhill channel this time because its two and a half year black line channel is showing to be resistance right now and it won't be long before the red channel forces it to rally or drop.

Trade well my friends


Blog Archive