A few you have asked me if the Dow is still exhibiting a Broadening Top/Megaphone pattern with an example shown below. Notice once the 5th Wave completes then a sell off follows with a retest of the lower trend line (point A).
As you can see a longer term chart of the Dow shows a similar type pattern evolving during the past 20 years. If it's a Broadening Top pattern then the 5th Wave is nearing completion. Furthermore if this pattern were to pan out then a drop back to the lower trend line would occur in the longer term with an eventual target near the 5000 level.
The S&P 500 exhibited a similar pattern back in the 1960's and 1970's so it has happened before on a longer term scale.
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