Channel Thoughts (by Greenbuckeye)

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Hey Slopers!  I want to show everyone what I'm seeing at this point.  

At the end of last year I started watching this channel form.  The main broadening channel in blue and then the individual smaller channels and wedges in red. You can see as we began forming the main channel we created a wedge and sold off yet only to create a full channel. We also created a smaller channel while using  the former broken trend line as resistance.  We stayed in the smaller channel within the larger one for a couple weeks bumping up against that former resistance til we finally got a sell off going back down to the bottom of the main channel. 

0208-buckeye

This post isn't really about making predictions but more of possible out comes in the coming week or so.  

If you look at where we are now we've actually created another wedge. Within that wedge is a gorgeous looking broadening triangle which is a very volatile formation.  I'm not showing a chart of that because I'm trying to make this as simple and straight forward as possible and I think the main channel is my focus.  

To continue I believe the chances of that wedge breaking down and forming another full channel within the bigger one is quite high.  It's possible we bust higher from here but I think it's healthier if we at least sell off to the projected trend line I've added.  I think the possibility exists that we are going to 1380 by the end of next week even if we get a 10 or 15 point sell-off in the next day or two.   We could see an ever biggerpull back all the way down to the bottom of the main blue channel but I favor the first scenario.  

If we were to get any where near that projected target at or very near  the top main trend line I think the bears could get a nice swift swoosh to shake out the weak hands and reset the charts.   It feels strange being bullish on this blog but I have to call it like I see it. The weekly RSI on all the major indexes aren't even close to being overbought.   The trend is up in my opinion.  Trade accordingly!

I want to thank Tim and all the Slopers for making this blog a way of life.