By Harlan Pyan
The following is an excerpt from the weekend premium market report by All About Trends. Enjoy a free 15 day trial to their service to get daily stock picks, market analysis, and a complete trading plan.
“While we all know the indexes are severely overbought in all time frames and frequencies the last 4 days has been more of back and forth with no real progress.”
And then came the famous “Into The Close ” Pump that blew the whole sideways consolidation out the door with the break into a new high again. IBM had a lot to do with that as it was up pretty big on the day and makes up 17% of the Dow. That’s in the short term. What about the bigger picture?
Last week one of our subscribers said:
“DOW & S&P are also in new territory. We’ve never been here. No map. No idea how high we can go. No technical guidance.”
Yes, right he is however. Technically speaking under the surface from a chartists point of view we actually do have a pattern to work off of. Albeit rare as they only show up at the end of major runs in the markets and that means major runs to the downside and major runs to the upside and they are called a few different things. Namely climax runs or blow off tops.
Let’s take a look at a chart from the past to see if there are any similarities to the current run.
Continue reading “Rare Pattern On Nasdaq Appears” »