Speculations on the pattern and Bill Gross
Posted on Apr 23, 2015 by WHC Bassetti in Letters
http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=4&dy=0&id=p22824069931&a=404779364
Here is a different way to look at the SPX -- a line chart which just connects closes with a line. This almost looks like a triangle. It can of course be contained within a rectangle, especially if candle shadows are included. But the important thing is the coiling nature of the pattern -- getting tighter and tighter. Foreshadowing fireworks. Professionals sometimes buy option straddles in cases like this. Propulsive power is built up in patterns like this -- a confirmed breakout would carry price a minimum of 80 points.
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