Chart of the Week – 12 Months of Successful Bullish Patterns

Earlier in the week, we discussed the five factors needed for an uptrend.  One of them was seeing continued successful bullish formations.

Specifically, those work by a security or index utilizing the following steps:

1-Stop going down

2-Log a higher low

3-Construct a bullish formation

4-Break out from the pattern

5-Hit an upside target

6-Repeat steps 2-5…

The SPX has been repeating this process for a while now.  In fact, it was 52-weeks ago today that the SPX put in its last lower low on 10/27/23.

And while the latest uptrend began with that first 1% gain the following Monday, 10/30, from our perspective, the market character truly changed with that first bullish pattern forming, firing and having its upside target achieved a few weeks later. 

In total, there have been NINE bullish formations, and nine upside objectives attained… With a few days left of October, there remains three patterns with targets of 5,900, 6,100 and 6,180…

The blueprint has been set for the uptrend to persist.  It’s just a matter of the SPX following it from here.