If you get the chance, please go back and look at the chart from this blog post. Perhaps I was being overly dramatic but I was trying to convey, from a pure PATTERN recognition play, that we were approaching PATTERNS that had their genesis from all time lows and decades and decades of time. These levels were to be respected.
The bottom line: The Dow Transports (Dow Jones Transportation Average) “smoked” this level and didn’t respect it at all. That’s when I realized there was, more than likely, more upside power to this wave. Other long-term have worked quite well (check out my work on the German Dax – a very nice 10-15% correction ensued. This is what I “expected” out of the Dow Transports simply due to the long term nature of these PATTERNS forming.
So where are we now? Please reference the chart of the Dow Jones Transportation Average below. If resistance doesn’t hold, we could be in for another big move higher.
- Dow Transports could hit 11,073. (1.618 price projection)
Now, let’s turn out attention to another Dow Jones Average, the Dow Jones Utility Average (reference the chart below):
- The Dow Jones Utilities should target 680ish to complete a 3 drives to a top pattern. If it defeats these levels then 840 seems like a realistic target.
Keep an eye out for my Dow Jones Industrial Average pattern analysis and targets… should be up soon after this post. Thanks for reading.
Follow Bart on Twitter: @BartsCharts
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
