NYSE COMPOSITE INDEX POSSIBLE CORRECTION
If you look at previous run up you can observe that it begins around 2003 with a no clear trend, but in the following years it tooks the shape of a rising wedge. The trendlines of this pattern expande, with both trendlines slanted in an upward direction. As the strength of the buyers weakens (exhibited by their inability to take the price higher), the sellers start to gain momentum. The pattern is complete, with the sellers taking control of the security, when the price falls below the supporting trendline. Normally this pattern resolves at the base of the rising wedge, and also in this case the solution is that. A new inversion phase happens at the base taking the shape of a reverse head and shoulders pattern. Now the story is repeating itself. We are in an upward move with a rising wedge. Again, the price movement is bounded by the two converging trendlines. As the price moves towards the apex of the pattern, momentum is weakening. A move below the lower support would be viewed by traders as a reversal in the upward trend. I think that we have still room for the uptrend for about 1 year, but at some point ( it could be the 1.61 fib extension) the pattern will begin his correction, pointing as usual at the base of the rising wedge. An uptrend can't last forever, so this is my general point of view standing at the analysis of similiar moves in this index. Good luck to all the investors.
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