Do the Markets Have a Little More Upside?

By: J.D. Rosendahl | Mon, Mar 29, 2010
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Below is the daily chart of the NYSE. It reflects a consolidation pattern right above the trend line for this leg up. The initial take is it's a bullish pattern with an expected upside break out pending. It also looks like a wave 4 pattern, so the break out might be the final move on this leg up.

NYSE Composite Index

Additional upside the next couple of days will probably be supported by month and quarter end window dressing by fund managers who have to demonstrate they're this market.

The reason for looking at the NYSE is because it's one of the broadest market indexes, and it also helps provide market clarity from a technical perspective. If one looks at the same daily chart of the DOW and SP500, they do not reflect this little consolidation pattern, and thus looking at various markets can provide clarity to market structure. I often look at all three indexes for such reasons.

Hope all is well.

 


 

Author: J.D. Rosendahl

J.D. Rosendahl
http://roseysoutlook.blogspot.com

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