Dow jones has formed multiple patterns in daily chart.
The broadening bottom pattern is shown in daily chart.
There is a falling wedge pattern which has given very good returns.
Then the moving average is not hinting anything. Having captured the 200 day moving average the price did not follow up. It has been a sideways market for the last 4 days as far as the closing prices are concerned.
The hour chart shows a formation of a triangle. The hour chart has already broken the raising channel.
And this is the 4th day closing above 200 day moving average. But no significant movement of price away from the 200 day moving average. which might put some more doubts in to the minds of the bulls.
SP 500 is forming a head and shoulders pattern in 2 day chart.
The right shoulder should be in place when the index trades above 1135-1145.
The right shoulder in a head and shoulders pattern can be lower than the left shoulder also.
But any price action 1155-1160 should be taken as pattern invalid. Because There is important resistance at 1150. And if that is broken bulls may aim for 1200.
