The US markets come back to life after deadly consolidation over the Trump win. We got a ‘Trump rally’ into all time highs on the US markets.
But where are we now? Well the situation is this – the market has basically stalled at new market highs here. The price action is showing boxing consolidation which I’ve highlighted with the square.
When this consolidation structures occur, we basically sit and watch for a breakout. Generally a thick bodied, solid breakout candle is the best signal.
Although we’re in a clear uptrend, it could still break either way, hence why we wait for the chart to demonstrate to us which way the market has decided to breakout of.
Right now there is a similar setup on the EURJPY where we have a bearish breakout of a box consolidation structure, and I’ve been short a few days on a bearish box break on GBPNZD.
These setups seem to be popping up everywhere, they are definitely worth watching as consolidation structure breakouts can generate big moves.
Lets wait and see what happens here with the DOW.