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(3/20/18)
The Dow is attempting to break out of its Triangle pattern, however, it failed
to follow through to the downside today. Thus it will be interesting to
see how the rest of the week plays out.
Overall the Dow is acting somewhat like the period from late 1999 into early
2000. Notice there was an initial sharp drop (points A to B) followed by a
sharp oversold rally (points B to C). This was then followed by a
consolidation pattern in which the Dow formed a Triangle pattern. In this
case, the Dow broke out to the upside, and rose back to where its previous rally
ended (point D). This was then followed by another sharp drop (points D to
E) in the Fall of 2000.
Amateur Investors
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