Giddyup.


It appears that the inverted Head and Shoulder pattern is starting to launch.  The two charts below are very bullish.  We are in the middle of the wave.

The chart below is a daily chart of the DJIA.  I prefer the Heikin Ashi candlesticks versus the standard candlesticks because they give me a better feel for momentum.  Two things stand out to me on this one.  First, the bottom of the candlesticks are in a ascending pattern.  That's good.  Second the tops of the candlesticks are in a ascending pattern..  That is also good.  When the tops and the bottoms get close together like a ribbon that has been twisted (see the left side of the chart) that indicates the momentum is drying up.  That was happening until today.  Now we see a resurgence of upward momentum which historically indicates another significant upward move.  The third thing I REALLY like is the trend indicator.  The red bars fell off the chart today.  Historically, this is VERY bullish.

 The chart below is a 4 hour chart.  It shows a nice breakout above the trend channel that we have been seeing for the last few weeks.  Very nice.

Overall, however, I don't recommend starting new positions. If you are already long, congratulations and enjoy the ride.  If not, don't worry.  I'll get you in on the next one.  You have plenty of time to make your money!