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February 21, 2006

Dow: Diamond or a Broadening formation?

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There were some mighty big breakouts last week. The Dow led the pack with a diamond breakout a week ago Tuesday. This breakout is holding and there is no reason to doubt it as long as broken resistance at 10900 holds. The bears out there will not doubt see a broadening formation evolving (gray trendline extensions). This may indeed be the case. However, it is not a threat as long as 10900 holds.

Posted by Arthur B. Hill at February 21, 2006 07:27 AM

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