A Major Piece of the Topping Puzzle?

On Friday, (Oct. 12) EWI’s Short Term Update made a simple, yet cautious forecast about the main U.S. stock indexes:

“The pattern will maintain its integrity… so long as yesterday’s highs are not breached.”

That prediction was part of a larger discussion of what STU called the “Topping Puzzle.” And today’s (Oct. 15) decline in the markets was an important piece that fit right into that puzzle: “The push to last week’s 14,198.10 high still culminated in an ending diagonal pattern and prices have turned down from this high.” So, what does that ending diagonal mean for the markets in the short term? Learn more about the Short Term Update here.