COMP completed a tiny Crab within a little Butterfly pattern and tagged a key trend line off the 2007 highs.
I call it a trend line because it’s exactly parallel to the line connecting the 2002 and 2009 lows. A reversal here would make for four touches — i.e. a channel. But, COMP could continue bucking its bearish divergence and go up to complete the larger Butterfly pattern (purple) at 3250-3295.
DJIA still hasn’t made a new high since completing a Crab Pattern a stone’s throw away from a Butterfly Pattern (purple) completion at 13,338.64. We’re still watching for a clean break of the rising wedge in the price chart and the trend line in the RSI chart.
Though, it’s important to note that, at these prices, we came within 28 points of completing a Bat pattern (yellow) at the .886 (13,317) in the weekly chart. That would make for a logical back test if/when the rising wedge finally breaks. It might also be the 5th and final wave target if today’s move stays within the wedge itself — which is just as likely.