Two Great Tastes That Taste Great Together

Actually, these counts do not taste great. In fact, if I had to identify these two tastes, I would call them "rotten eggs" and "vomit" … I don’t know, "puke" has a certain guttural allure about it. Okay "rotten eggs" and "puke" it is! Nothing about the counts during silly season make much sense. Here are the two main options again, from my point of view.

Based on how the price has been meandering up, with no bearish resistance, on little breadth and volume, makes me think we will have no real pullback at all until Minor C is done. If this observation is valid, then I tend to favor the triangle option at the moment.

 

You can see on the triangle option chart that there is a target of 1135-1140. This is determined by measuring the width of the triangle at the A and B legs and adding that to the termination point. This is a rough target. But the principle behind a triangle formation (which has two converging trendlines, one up-sloping and one down-sloping) is that prices get "compressed" during its consolidation period. And there is always a "thrust" out of the triangle as spring becomes "uncompressed". The triangle is a continuation pattern. As since the price trend was up going into the triangle, the resulting thrust out is also in the upward direction. The opposite is true for a triangle formation in a down-trending market.