Is the Dow in a Jam?

October 23rd, 2012

by Chris Kimble

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The Dow remains inside of a fairly clean rising channel that has been in place for a few decades. The rally of late now has it back to the top of this long-term rising channel.

At the same time the Dow is at the top of its channel, one can't help but notice the potential that a rising wedge looks to be forming. That would suggest a two-thirds chance of lower prices on the Dow.

The Dow is in somewhat of a jam at (1) in the chart above, reflecting that something needs to give (breakout or breakdown) fairly soon!

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