Thursday, December 4, 2008

Update

Triangle off of a triangle: Looks like we made a little wave 4 triangle on the last leg up which could either be a wave 4 (with a 5th leg up to come), or it will break down from here.

If it breaks up, the little triangle target would be about 8,690 on the DOW which would throw-over on that larger triangle top. Oscillators moved up higher into overbought. This type of action is exactly why I’m keeping position size small. I still think we finish the day down, but the price action is certainly more bullish than it has been of late.

Chart below is DOW 2 day, 2 minute.