Global Rallies Taking Place Off Look Alike Support Patterns

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Ryan Detrick, head of Statistical analysis for Kimble Charting Solutions and I were honored to be on a “Chart Art” panel this past week, at the Stocktoberfest meeting at Coronado Island.

The main thrust of our talk was this; Global markets have formed look alike patterns and support of 5-year rising channels remains in place!

Each of they key indices declined of late and “ALL” of them hit rising channel support and Fibonacci retracement levels, where “ALL” of them created bullish reversal patterns (bullish wicks) at these dual support levels.

We also discussed the chart below-

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This chart highlighted that 10% corrections have taken place on average once every two years, since 1960.

Bottom line that we shared was; 10% corrections are pretty normal for the past 50-years and the 10% correction that took place of late, did not break 5-year rising channels any in other 6 key global indices above.