We have two quick updates on the S&P 500 and NASDAQ Composite indices today. Both are sending encouraging signals on their point and figure charts. They seem to be setting up for one of two potential patterns: the bullish catapult or the shakeout. Both the bullish catapult and shakeout are very bullish patterns.
Of course, we don’t know if these patterns will come to fruition, but they are something we’ll be monitoring closely in the coming weeks. A key with point and figure is to not anticipate signals or indicators, so while we are encouraged by these developments, things can change. Luckily, point and figure charts let us know what is happening in real time, as things pertain to the markets. We’ll be ready to adapt when the charts change.
Check out the point and figure charts of the S&P 500 and NASDAQ below for details. As always, our point and figure charts are provided by our friends at Dorsey Wright and Associates.