From a macro perspective the reduction in QE by the Fed historically has provoked a sell off in the stock markets and this will occur again no doubt, but near term there is an interesting pattern unfolding in the Dow 30 that would encourage another leg to new all time highs.
Currently, my daily signal remains long from 16167 basis the cash market from the 18th December. The 61.8 Fib expansion has been achieved at 16488 with the initial profit target set at the 100 Fib expansion at 16677.
Looking at the 4hrly chart below, an inverse Head and Shoulder pattern has formed with the neckline at 16491. Should the pattern play out, the target sits at 16770 which is also the 1.618 Fib extension of the recent minor correction from 16531 to 16239.
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