We have been watching closely as price fell out of the triangle. Under different circmstances we might have taken it as a short signal. But in the present context we completely discounted the action. The other major indices did not confirm. There was no confirmation or follow-through.) So once again the old principle is proven: The present trend tends to continue. The present trend is obviously sideways choppy, with contrarians in charge. The length and vigor of this trend are impressive. (Illustrating Keynes’ famous dictum: The market can remain irrational longer than you can remain solvent.
Here two years of sideways:
Classic sideways market with effort to break away. 2 years, weekly. These sideways markets build up powerful energy which propels the market a commensurate distance when the range is broken. The Point and Figure method attempts to measure this energy and it forecasts a target of 2579 in the present case:
Incidentally — we will be taking a short position in the euro shortly. Worth consideration.