The measuring implications of the triangle appear to have been frustrated and we can expect trends to be short and not sweet –like that just finished–13 days. We think the market is setting up for an extended period of sideways volatile trading. This is to set up a resumption of the bull market. In the meantime we will know when something new is at hand –taking out the lows or taking out the highs will be the harbinger.
The recent market also was notable for a couple of other events worth mentioning:
A large gap in silver tempted us to take a position –putting a toe in. Of consideration the gap is so large that buying enthusiasm may have been exhausted in the event. If the gap were closed our position would be closed.
Just about the same thing happened in bonds –TLT.
We put on a short in TBT. Given the squirrely nature of the markets and the country these events may be precursers of larger events in the markets. Again, the gap closing would close our position.