Fri 5 February 2010
Dow, S&P and, Nasdaq indices to break upside soon

  
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Image source Bloomberg Finance

All 3 indices have been trending in downward sloping pennant formation with the 4th wave just completed last night. I would expect the 5th wave to commence tonight and it will be an up wave which ultimately breaks upside to test the previous highs.

Tue 5 January 2010
Equity indices breaking upside in past 24 hours

  
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Image source Bloomberg Finance

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The above charts, the US Dow, S&P500, Nasdaq, and the ASX All Ords, all show that 2010 has started with an upside breakout of the sideway trading patterns of all 4 indices in the second half of 2009 particularly since September. Nasdaq, as you can see, has led the US market and has resumed the advance after a reasonable pullback. We can look to the next few months with confidence.