In my last post I blathered on about a potential rising wedge pattern in the DJIA daily chart. On the 9th of December the DJIA very briefly broke the top of the pattern but returned to inside the fold before too much technical damage was done. Again this morning the DJIA has broken out of the wedge this time the bottom. Given these two excursions disrespecting the pattern it would appear to me that the time has now come for this pattern to, in a crude country expression, either crap or get off the pot. By the end of today the DJIA should be planted firmly below the line, at most positive just readying a test of the bottom rising line early next week, or at worst sailing south. If not, the pattern is probably a dud. As I always say, time will tell.
One other interesting point is that the focus of the triangle is roughly on December 24th which my preliminary calculations indicate may be a very strong risk window. So even if this rising wedge pattern fails, it may yet still produce some useful fruit.
Regards,
Douglas