Doc Copper has spent the majority of the past 7-years inside of falling channel, the recent 3 years showing a strong rally, finding it back at the top of the channel.
Even though the majority of these indices are down this year and several percent below highs hit in January, the 8-pack below reflects that each index remains above support (February lows) and 200-day moving averages at each (1).
Facebook has been in the news of late, unfortunately for the bulls, its been mostly negative. Could this situation be creating an opportunity? The Power of the Patterns believes it has.
With the Dow and 10-year yields testing support near the tops of 70-year and 25-year channels in the first chart and the Dow and S&P testing support at each (2) in the second chart, if these support lines would break to the downside, don’t be surprised if selling pressure picks up.
If support would happen to not hold, the “measured move” of each descending triangle would suggest that these important indies would decline at least 10% below the lows of early February.
The 9-pack above looks at stock indices from the states and in Europe. We believe ‘multi-decade” opportunities are in play due to the patterns at hand.
