Broadening Top into a Rounding Top--or if you wish, a Diamond.
Using p. 175 of Edwards and Magee (1997 Edition). On the INDU 1 is (17151), 2 is (16333). 3 is (17350), 4 is (15855), 5a is (17991), and 5b is (18103). The Rounding Top is complete.
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On the SPX, 1 is (1991), 2 is (1904). 3 is (2019), 4 is (1820), 5a is (2079), and 5b is (2093). The Rounding Top is complete.
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If the RSIs go below 30, since they haven't been able to convincingly break above 50, we would see below 1972 in SPX and 17067 in the INDU. Of course, 1820 and 15855 are waiting. Regardless of what happens next, these are ugly patterns. |
