Monday, March 26, 2012

Near Possible Pattern Completion

Click on Chart to Enlarge

This is a chart of the Russell 200 cash index.  All major indexes are similar at this time, but this one is still below its 2011 high.  It appears that an upwards ABC pattern may be completing off the Oct 2011 low.  However, there is no confirmation of this yet.  See the chart above for initial signs of confirmation.

If the low at "4" is broken this week, that will be good confirmation that a significant high is in place.  That would also be a failed breakout of the May 2011 high on the Dow and S&P 500, which would continue to suggest a double top chart pattern could emerge.  If the entire "C" wave is retraced in less time than it took to form, that would be indication of a major high having taken place.

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