Meta Strategy Trading Portfolio – Probability Map Update.

– Wednesday Outlook Add-on –

Consolidation Breakout

After moving in a tight sideways range for two weeks the S&P 500 and the Nasdaq have staged a breakout from bullish consolidation patterns under increasing volume in the last trading minutes just before a long Labor Day weekend.

Such high, tight bull flags are considered to be some of the most bullish continuation patterns by momentum traders.

Price just powers on without looking back.

A successful breakout would have considerable support from recent breadth-thrust and volatility-collapse signals.

At the very least those are signs to not bet against a continuation of the uptrend in stocks.