Mysterious mutant Kilroys? (Better than mutant teens)

Anyone who has experienced the mutant teen knows that you haven’t lived until you’ve had one.  The comic strip Zits nails the experience.  Comic, tedious, enraging — even occasionally rewarding.  And speaking of mutants a common pattern is spreading across many issues.  Some of our very acute students have been looking for a Kilroy (reverse upside down sirsanana H&S) bottom in the major indices.  Here we examine that question:

 

In TMW (and virtually identical in NYC) price is forming a congestion area  in what would be the right shoulder (hand).  Is that going to make a completed Kilroy here (assuming a valid breakout)?  Could.  In this case and in all the other cases that look like this — a whole raft of them.

Another way to look at this –and the other issues, because they all share the same market — is as an upwave response to the downwave that started in January.  The rally is losing speed and is rounding over and the resistance here is just the first hurdle to a real bull trend.  What is occurring here lately is either a reversal or continuation pattern.  Remember that a sideways wave can substitute for a downwave.  So this upwave may pause here and not create a downwave.  A break down would imply a test of the recent low –which could be daunting.

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