On the canvass is the chart of the Dow Jones Industrial Average (^DJI), NASDAQ Composite Index (^IXIC) and the S&P500 (^GSPC). For those who do now know, these three indices are the benchmark of the US and global stock market so wherever they go, most stock markets follow. As these three indices move in a similar fashion, when one of them goes down, the other two often succeed and vice versa. Try checking their historical data to see the movement. Anyway, as of the moment, they are all moving on a 2-year uptrend and within the uptrend is an 8-month ascending channel. As we look closer, we even see something better and this is the highlight of my post. I want to emphasize the bullish chart pattern that I spotted recently on these three. Yes it’s a bullish chart pattern! The ^DJI could be forming a 2-month ascending triangle pattern while a possible 2-month symmetrical triangle for ^IXIC and ^GSPC. Whatever triangle they may be, the fact that it’s coming from an uptrend more likely means that its poised for an upside breakout. These indices are already testing the triangle’s resistance. Well actually, the ^IXIC seemed to have already broken out but I’ll only be persuaded if the ^DJI and ^GSPC follow through. If all of them convincingly breakout from the said pattern, we could see the ^DJI hit the 13,000 marker, the ^IXIC at 3,000 and the ^GSPC at 1,400. In case things don’t go well for them, the significant support could be the 8-month ascending channel. If the channel breaks down, the 2-year uptrend will be the next significant support.
Above all, as long as the uptrend remains intact, I’m bullish on these 3 indices even if they don’t breakout from the 2-month triangle pattern. In addition to that, they are currently moving above the 50, 100 and 200-day moving averages and the MACD is at the positive territory which even strengthens the bulls. Since the US stock market is often the benchmark of the global stock markets, if they perform outstandingly, our stock market will most likely too.