S&P-Patterns Suggests 10% Decline Upcoming On Support Break

The top chart above highlights that the Dow has spent the majority of the past 70-years inside of a rising channel.

The bottom chart highlights that the 10-year yield has spent the majority of the past 25-years inside of a falling channel.

Support is support until broken and both are testing short-term support lines at each (1).

In the short-term, it would be “bad news for the Dow” if both broke below support at the same time at each (1).

“Descending Triangle” pattern

Around two-thirds of the time, the descending triangle patterns result in lower prices. If the 200 day moving average lines and support breaks at each (2), the descending triangles suggest that the 

 don't be surprised if selling pressure picks up.

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