Looks like some very bullish action today in the metals and miners. I like how we didn't make a lower low. Also, miners have reclaimed their 50-DMA.
Really need some follow through over the next few days if this is indeed a low.
This P & F chart is one I sent to dpong in early March while discussing this current pattern with him.
We were exchanging thoughts on the coming breakout.
Two formations are outlined. The first one, on the left side of the chart is a completed Bearish Formations in Combination pattern. It consists of a bearish signal - a top at 1433 (X on chart ) and then a bottom at 1199 (C) followed by a lower top at 1366 (3 on chart) then a lower bottom at 1166 issuing a sell signal (O). The second formation is a Triple Bottom. Two equal bottoms at 1199 followed by a third which penetrated 1199 and issued a sell signal at 1166.
The second outline is the same formation except it is the opposite. A Bullish Formations in Combination that is currently in process. A continuation upward to 1399 will be where the buy signal occurs. Note that the buy signal at 1399 will occur above its LT bearish resistance line, turning the chart bullish.
I thought the stock market made a top. How much more fuel left is the unknown X factor. If Nasdaq takes out its old highs then I will have to be left wondering what happens next, maybe Dow double to 52,k? For one thing I think the commodities like gold should do well as the middle class gets squeezed to the barebones.
Thanks, I noticed that triangle too. The problem is that gold often breaks down from formations that SHOULD be bullish. I'll be watching for the break out of the formation, either up or down. My thoughts are that if it is indeed bullish, it could finally take us over 1400.