On 5/2/12, I presented this chart for the first time. I was suspecting the similarity in the pattern to the previous year. The pattern appeared as though a triangle was forming after the run up off the Jun/Jul 2011 lows.
So far this has proved to be the correct assumption. If we continue to use this as a guide/should the market continue to repeat this pattern, perhaps this will help aid in determining where the market goes next.
The update on 5/16/12. Here it was again once it broke down out of the "fake" triangle on 5/17/12. I noted that the first bounce should be sold.
The update on 5/20/12. Looking for yellow 2 to sell.
Here we are as of Friday. Sell yellow 2. Now, does yellow 3 chop down here near the 200 day SMA?
Lets keep an eye on NYMO and a possible divergence. Stay tuned....
