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Consolidation fixation!

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The consolidation pattern in the market since June has created so much commentary that we thought it important to outline graphically.

S&P 500 - The current trading range of 975-1015 in the SPX is so identifiable that it has everyone guessing which way it will break. Due to the attention, you can bet that the range won't last forever, but until it breaks there is no need to guess.



Dow Jones Industrials - The DJIA looks similar to the SPX, except that the recent move to the upper end of the current trading range created a more meaningful overbought condition. Much like the SPX, there is no need to guess which direction the breakout may occur, because once it does, the reaction (in either direction) should be dramatic.



NASDAQ Composite Index - The NAZ looks very different than the other indices because it has not been in consolidation mode since June. The Technology dominated market barometer has been in a very clear trend of higher lows and higher highs, which defines an uptrend. It appears that while the other indices are in neutral territory, this index may be putting in another higher low.

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