Friday, December 10, 2004


A reversal day to the downside today. The Dow closed only 9 points lower after making a higher high. This appears more and more to be a sideways triangle formation with small swings up and down until a big resolution one way or the other occurs. I still believe the resolution will be downward. Triangles are either halfway continuation moves (and as such you can measure how far the move will go) or they signal the end of a swing. The latter is what I favor at this time. It make take a few more small moves to shake this out, but when the breakout happens, the move, whether up or down will be significant. With the indicators the way they are, downward is where I'd put my money.

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