Chart of the Day - Wednesday, July 21st, 2021

Today’s Chart of the Day was shared on Twitter by Peter Brandt (@PeterLBrandt). It's a daily bar chart of the Dow Jones Industrial futures over the past three months. Peter alludes to the fact that the Dow has formed a classic chart pattern known as an inverted head & shoulders pattern. This bullish pattern will be confirmed if price breaks neckline resistance around 35k in the near term. The Dow has tested and failed at that level three times in the past two months. Will the fourth time be the charm? If you want to split hairs, you could argue that this isn't a true inverted head & shoulders pattern because it formed after an uptrend rather than a downtrend. However, Peter has explained that while this is traditionally a reversal pattern, it can also be a continuation pattern. After two months of sideways price action, could one of the most important indices be ready for a new leg higher?