Market Outlook.
Positive. For now, the index may be reasonably expected to overcome the recent failure pattern and continue the 2009 rising trendline. A break below the 2009 trendline should trigger a re-evaluation of this outlook.

Daily Chart.
The index is trending up since Mar 2011. A bearish rounding top pattern from Apr to Jun 2011 failed to complete successfully when the composite found support and broke a major resistance level in early Jul 2011. For now the average appears to be on a short term correction within the Mar 2011 rising trendline.

Weekly Chart.
The 2009 uptrend continues to be unbroken, although a failure pattern presented itself during 2Q 2011 when the index failed to breach the 2010 high. Failure patterns usually signify a weakening of the current trend, but if viewed within the context of a recent breakout in the daily chart, momentum appears to side with the bullish view.
No comments:
Post a Comment