Transports break past 200-day MA and broadening wedge resistance

The core indices scrambled above their 50-day MAs (or came close to doing so), but one leader of economic activity, the transports, actually cleared its 200-day MA and broadening wedge resistance. A new bullish trend has yet to establish given the ADX knocks aroud 15, but if the 200-day MA can hold it won't be long before a new bull rally is confirmed.

The point-n-figure chart shows a triggered Bullish Catapult Breakout from Monday with a target of 5,250. But the real challenge will come on a push to 5,400 resistance.

So will the Dow clear its (developing) bullish ascending triangle, or is another trip to support needed? Going by the Transports a straight breakout would be favored. Going by pattern development - another trip to support (and a better opportunity to buy) would make for a stronger pattern. Should the straight breakout occur it should happen within the next few days.

Popular posts from this blog

Markets attempt a swing low for the seven day decline

Low volume selling after Russell 2000 breakout

Minor losses pressure Thursday's reversal attempt