The last time I posted about the Transports they were finishing measured moves and the target w/ in around 9700-9800. The index blew thru that area after some consolidation and tapped out around 11, 500. We now have a very nice pattern taught to me by Larry Pesavento – the 1-3-5 and it appears that the index is starting back down. There are two interpretations that I’m showing – 1 is very bearish and the other is very bullish. Either way, in the near term, I expect a pullback and if we get a BUY pattern I’ll buy w/ a stop and if we get a SELL pattern I’ll sell w/ a stop. I’m a pattern dude do I’ll just wait and see …
Kind of cool that the price projection from the all time low from the 1930’s was 1.68179 (F#) and we stopped on the .68179 retracement. In the world I live in (you might not, so don’t worry about it or believe) what’s that usually telling me is the ‘index’ is respecting (OK vibrating) to that ratio and it’s inverse …
The bullish case is that we stopped at exactly the same price point as we did every other time since this powerful move began in the early 2000’s …
hope you have had a good weekend.
Bart
