Update: Rising Wedge Playing Out on Dow
Last week we spent some time talking about the rising wedge pattern that was forming on the Dow Jones Industrial Average Index (DJI, INDU). Here’s a link to the previous article (Market at a Crossroads: Wedge and the DJI). Read it before continuing this one.
I promised an update and it looks like the pattern is playing out by the textbook. We saw a few more days of consolidation within the support and resistance range of the wedge, and then it took a break to the downside.
We have yet to see if the overall trend will continue downward, but the analysis says it’s a strong possibility. I’m inclined to think that the bear market will continue for a while before the bulls gain traction.
Ryan Teeples is a co-founder of LearningMarkets.com and ProfitingWithForex.com. His articles are regularly featured on online investing publications across the web.