Take your pick the software has taken out all of the auto support lines now in the 10730 area and doesn't see any at 10700, but we are sitting on the 50ma line. According to Pring if the consolidation takes longer than 4 weeks then it probably isn't a flag formation as this period is deemed too long for normal profit taking in a rising uptrend (even though it has the classic formation of one). It appears most likely to me anyway that we have a break-out from a triangle formation with rising volume at the point of the break. We'll find out next week which one it is.
See below, rising volume at the break, diverging RSI. If this is a triangle then I guess a drop to around the 50% fib line (10559). Finally, we have another indicator which points in this direction and this is a Directional Movement indicator (negative) crossover which when occurs has caused a drop in the DOW index every time this year. We almost had one on the 8th of December but it didn't cross, this is a pretty sound indicator.
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