The primary theme of last week’s chart review was technical perfection in the markets leading to a surge beginning the week of December 17th, otherwise known as this coming week. The tight range that the Dow would fall into during this past week played out to near perfection, as the generational trajectory exerted its influence over the markets. We now have the necessary setup for a real effort at taking down this generational trajectory, which is rarely taken out on the first attempt as demonstrated this past week. For a good demonstration of the failure of first attempts take a look at June-August in relation to the trajectory here.
Here is the look for the week ahead:
click chart to enlarge
DOW
DOW TRANSPORTS
S&P 500
RJI (COMMODITIES)
