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.”
What’s your take?