Now, after being contained within this falling for nearly two months it does appear that the Q's will break out of it tomorrow. Depending on how your upper resistance line is placed, you could say that the Q's closed above that upper line today. So if the Q's can get any juice behind them tomorrow then they could not only break out of the channel but push above the swing high of 88.21, which is just below the next at the 50MA. If the Q's should fail now, then there's something very wrong with this sector. But I don't think they'll fail and the break out of the falling gives us a . The width of this is almost $4 dollars so the measured move from the break out would ultimately take the Q's above the swing high at 91.36 to around 92. In a perfect world. Let's first see if they can break out of the channel and do so with gusto before worrying about a move to $92.
Been tracking transports for years as they sometimes can be the canary in the coal mine Looks like a hammer today so expect transports to rally tomorrow.
Congrats on your UL & UN shorts.
Yes, I see that pattern. Back in January I saw the same pattern in the DOW and sure enough it proved predictive. At the time I didn't know it but this is what Basil Chapman calls a 'falling axe pattern,' and Basil is one of the best out there. But the parameters are very clear and if the Q's rise above 88.21, then that negates the falling axe pattern so I hope you have a stop in somewhere around the equivalent SQQQ level.