This is what he wrote in his blog Monday 4/7/14. Market Monday: The Week Ahead
I use what's called internal trendlines to show a symmetrical triangle, outlined here in red. If you're unfamiliar with internal trendlines, I discuss them in several of my books, but I usually don't like to use them. You draw a trendline through price instead of on top or bottom of the price bar.
Anyway, what is shown in the figure is a throwback to the top of the triangle. A throwback happens 54% of the time, according to my book, Encyclopedia of Chart Patterns.
When a throwback completes, price resumes rising 65% of the time. So, I'm looking for the indices to resume their climb.
*******
** This is what the market looks right now:
** daily **
** daily, 4 months **
** weekly **
** daily **
***** THE VERDICT ****
The S&P500 had 2 up days (Tue were Fed minutes) followed by 3 ugly days; for a weekly loss of about 3%
Bulkowski's new prediction 4/13/14 below:
I see a turn coming.
Look at the two small green circles at the February low and April high. A Fibonacci retrace of that rise appears as three red lines. The top one is a 38% retrace. The middle and lower ones are 50% and 62% retraces, respectively, of the move down from the April high.
The Dow is at the 50% retrace. We could drop to the 62% line (or turn sooner), but I see a turn there or perhaps slightly below that when the index meets more support. I could be wrong, but I'm looking at this opportunity as a chance to buy the dip. I don't think we have the bad news to form a bear market.
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