Preface to this post: Due to a fairly busy schedule on Friday, I am composing this prior to the opening bell. Thus, the charts are accurate through end-of-day Thursday, but the general points remain the same.
Here is the daily chart of the Dow Composite for the past couple of years. There was a pronounced gap (as with most markets) last week which was sealed during Thursday’s mega-rally.
In spite of the sense that Thursday’s rally was the rally-to-end-all-rallies in a larger context, it is a barely-visible blip. The big picture – – a topping pattern spanning about 20 months – remains fully intact.
