After closing at a new low on October 27, the Dow rallied for about 12 hours before forming a 3 day triangle pattern or ending diaganal pattern. In either case it indicates that the end of this rally is near as we approach the October 14 highs and the 50dema. It could be over as soon as mid-day tomorrow. There is still the possibility that we will only see a pullback followed by another rally before the downtrend returns.
The narrow range day usually implies range expansion to follow which is what we are seeing this morning.
No comments:
Post a Comment