Why The DOW May Reach New All Time Record Highs Very Soon.

If you are familiar with my work as of late, especially in light of the current situation involving world central banks who appear to be determined to create a “risk on” environment for traders, I have been saying this market IS going higher.

Lets look at a chart.

Below is the price action of SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) for the last year.

If you observe the red pattern (circled in black), it appears that a clear symmetrical triangle is forming.

The current (deliberate) “risk on” environment being supported by the world central banks makes me believe a breakout to the upside is likely.

Is it possible that a breakout to the downside could also occur as demonstrated by the following?

Sure it is, but again the game now in my opinion is “risk on.”

If you are interested, click the following link to see what Investopedia has to say about a Symmetrical Triangle like the one I outlined for you on the chart of (DIA).

What’s your take?

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