S&P500 breaks out of a Triangle Consolidation

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anikolov
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S&P500 breaks out of a Triangle Consolidation

S&P500 has been in a broad sideways consolidation for most of this year. Since the July top this consolidation has unfolded in a Contracting Triangle pattern as shown on the chart below:
http://www.trendrecognition.com/images/stories/2011/indexes2011/sp500_st...

Now, we can't be sure that this Triangle is complete, but the last week's strength suggests this may be the case. If so, the market is likely to rally until the end of the year and early January. In fact, if this pattern is indeed unfolding, the stock market is likely to be firm in the most of Q1 of 2012. I would expect a rally toward 1400. Then, it may be hit by another strong wave of selling. Overall, my view is similar ot what Mike Swanson said today about what he expects for the next few weeks.

I'll appreciate your comments on the Triangle scenario that I've been following for some time.

Alexander

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