Coil Patterns such as rectangles, triangles, sideways lines, etc. can be thought of as stored energy. When that energy is released out of the coil, one direction or the other, the moves can be dramatic and with force. Currently the SP 500 index has been forming a coil that can be seen on the daily charts since early November. Possibly the FOMC announcement this week may be the catalyst to move it out of this coil.

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