Friday’s Market Action: Consolidation In A Symmetrical Triangle

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Friday’s Market Action: Consolidation In A Symmetrical Triangle

By John Lee on October 18, 2008 | More Posts By John Lee | Author's Website

We are consolidating in a symmetrical triangle, meaning, we aren’t going anywhere for a a few days. This pattern has a 50/50 chance of both breakout of breakdown which is the reason why I’m staying in cash at least for now. Today was interesting however. The materials/industrials sectors displayed strength and formed double bottoms, but hit major resistance at their prior short-term highs. It was a good day to be long and short and another reason why you must either sit in front of the computer all day or place stops.

DJIA (^DJI) - 1-Day Chart

Here’s a close-up (10-day Chart):

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