Beware the 'Checkerboard' Market

The chart of the Dow Jones Industrial Average, below, exhibits what I like to call a "checkerboard" pattern on the Arms Candlevolume chart. That is, we are having a series of sideways Equivolume boxes that are quite short and not getting the market anywhere. 

Moreover, the candle bodies inside the boxes are alternating red and black, like a checkerboard, and they tend to occupy a small area near the center of the outer box. Look at how we last saw such action back in early January. Checkerboards are an earmark of a market that has encountered overhead resistance, and they are a warning of a likely imminent downturn....317 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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