Broadening Wedge

click to enlarge

Well,well ,it doesn't look like were going to get the deeper retrace that I (and a few other traders) were looking for. The Russell gapped up on open and had good momentum pushing past the previous wave b and the race was on. You would have thought by listening to the "Closing Bell" at CNBC we had cleared the previous High.I don't think theirs a possibility of the Russell forming an Triangle because the Fibs retracements are calculated at 85.4%....76.4%..and 66.66% . Once the Dow breaks the Broadening Wedge that has been in formation for 5 Years we need to be watching for a 5% Failure. The actual number has some slack because when looking at different Charting Services you get some slightly different results. The 5% Point Has to be cleared on a closing basis or a Failure of the Pattern may result.

The Utilities still has not broken out and now theres an Broading Wedge on the end of the previous days trading.The Break out point is still valid until the Pattern breaks down (if it breaks down).

One of the things I Learned from trading Forex is the Liquidity is very low in the currencies market in December and most Forex Traders go on Vacation for almost the whole month. With Margin to Debt Ratios High it is easy for scalpers to run stops.Then we wind up with a bunch of chart patterns that doesn't make any sense,and the High Leverage Bankers wind up scalping some extra needed Cash.

December May be a Good time to say what I think about the Current Economics such as why Wages have to go up and how a person with an Economics PhD doesn't know jack about economics.
Best Wishes and Be Careful, now is a time to Protect your assets!