The price triangles that show up on the charts of most of
the market composites were not decisively eradicated this
week as I thought they might be. The bears are tired and so
are the bulls. Now since the triangles are running out of
real estate on the charts, some directional would seem finally
at hand. Most discussions revolve around a positive breakout
vs. a breakdown (The breakdown argument looked to be set to
carry the day until Friday's last 30 minutes of trade, when
bigger players bid on baskets and creamed the shorts). The
other possibility is that the market simply remains in a
frustrating period of price compression that drags on. Folks
are so used to wrenching volatility that such an eventuality
seems remote to most. But, it could happen, and confirm the
old adage about the market following the path of maximal
frustration in the short run. We shall all see soon enough.
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