DOW Triangle and S&P Channel Breakdowns

By | July 31, 2014

The S&P 500 index broke above the neckline of an inverse head and shoulders pattern in May, and then advanced higher, to the area of the pattern target price projection. It reached that goal in June and has since moved in a narrow range horizontal channel consolidation. It broke through channel support today and its 50 day moving average. The MacD and RSI have been in bearish divergence for the last few weeks, and Chaikin money flow crossed below its 21 period signal line at the beginning of the month.

56. S&P chart

The DJIA took out the support line of the rising triangle it had been trading in earlier in the week and today has dropped below its 50 day moving average.

56. DOW Tri chart

I’ve been monitoring these patterns and the broader market indices in the “Market Overview” section of the site, and I will update them on multiple timeframes over the weekend.

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