Technical patterns

I was looking at the chart of the S&P 500 and two patterns came very clear -- that of the market in November 2010 and that of the past few weeks. Then and now stocks were trading in a narrow range. The November pattern eventually developed in a strong up move.

What will happen to the current market indecision?

In November volatility spiked as stocks traded in a narrow range. Commodities soared after a brief correction. Volatility eventually declined as the market resumed its rise.

Does this mean that for the market to rise from current levels it takes a decline in volatility and a strong move in commodities (CRB)?

Time will tell, of course.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked second best gold timer by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.

Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.