The Dow Jones Composite (which is the Industrials, Utilities, and Transports, all mushed together) is, as I said in Thursday’s post, “tightening and narrowing”. The fall on Friday took it right down to support. What I want to see – - what I really, really, reallllllllly want to see – is a break of that trendline, because it’ll be the first break of that wedge ever. I would be giddy. And that’s really what all of us want, isn’t it?
I would point out that the Industrials' average has already broken its own trendline, but this isn’t the first time, as you can see below. The last time, on an intraday basis, it sneaked a few points beneath, but it didn’t close beneath, which is key.
I say again, if we get some weakness on Monday, it could be the start of something very exciting…particularly, at the risk of getting ahead of ourselves here, since it’ll open up the prospect of breaking that blue supporting trendline, which goes back to the market bottom sixty-four months ago!
Of course, the anti-Christ does her announcement next Wednesday, so maybe that’ll shake things up. I’m taking it one day at a time.