This is the scariest chart when it comes to the Dow Jones IMO. What this shows is a rising broadening pattern that began in the 1940's. My favorite pattern to trade because the down move is often swift but in this case, would cause financial chaos in the event this plays out.
What happens with this pattern is two trend lines begin bouncing off each other at the very start at the bottom but over time, begin testing each other while the two trend lines begin to expand until the final test at support, price goes parabolic but the upper trend line is so far away that it would be almost impossible to test again, thus becoming unstable before finally collapsing lol I have seen this PLENTY of times on shorter time frames like the daily and weekly but this is just massive. What makes it worse is the broad top pattern within this larger pattern. What a setup for financial ruin,...... Of course unless your short when the sh!t hits the fan.
Worse case scenario Dow at 2000. We Shall see with time. The Fed could possibly try to hold this up or even extend this but the more its delayed, the more painful it will be later.
What happens with this pattern is two trend lines begin bouncing off each other at the very start at the bottom but over time, begin testing each other while the two trend lines begin to expand until the final test at support, price goes parabolic but the upper trend line is so far away that it would be almost impossible to test again, thus becoming unstable before finally collapsing lol I have seen this PLENTY of times on shorter time frames like the daily and weekly but this is just massive. What makes it worse is the broad top pattern within this larger pattern. What a setup for financial ruin,...... Of course unless your short when the sh!t hits the fan.
Worse case scenario Dow at 2000. We Shall see with time. The Fed could possibly try to hold this up or even extend this but the more its delayed, the more painful it will be later.
Trade active:
Price surging above immediate chart pattern however, Overall pattern is still active. Further delay = further pain of price plummet in the future.