Loading ...When is a broadening top not a top?
One could argue that the dollar is going through a broadening top formation, which if I listen to EWI enough, means a bear market.
EWI certainly talked enough about the DOW being in a broadening top, but surprise, surprise, it broke out of that to the upside, and now we are in the early stages of a massive blowoff bull market in stocks, which I do not expect to end for at least another year or more. Is the dollar doing the same?
Does EWI really say that?
I know McHugh does, but his application of EW is horrendous.
Broadening “tops” to my mind are more often consolidations in a continuation pattern.
In any event, Bulkowski regards these as “poor performers” from a reliability standpoint.
I cancelled my subscription to EWI years ago when I realized they were a one-trick pony. Every issue was about the end of the bull market. I can almost say that when they become bullish maybe I should sell. I remember EWI telling me about the broadening top for the DOW and how it was going to plummet. Well, that didn’t happen.
So now I’m thinking the dollar may be in a very broad continuation pattern in a bull market, which would mean almost everything else is going to go down.
I guess I’m a bit of a contrarian in this group.
Bullkowski’s chart pattern site says 50/50 on direction of breakout. Definitely a tough read.
Ì put more faith in the cyclical nature of the dollar – it suggests the dollar has peaked.