Channel Pattern

$TED Spread caught in an Ascending Channel Pattern

Posted by Investing Freak on October 27, 2009
Market Analysis / 1 Comment

Let’s start off with once more defining the TED Spread.

The TED Spread which measures the general risk in the economy.  TED increase – is a sign that lenders believe the risk of default on interbank loans is increasing.

I first mentioned TED Spread around September 28 and what occurred was a decline in the markets the following week.

Here we are a month later and the TED spread hasn’t lost steam and in fact it is now in an Ascending Channel (Bullish Pattern)
Price Channels usually show trends, With the moves in the TED from Sept 14 till now we are seeing unrest in interbank loans.

I won’t keep the TED out of my radar but wanted to document the current possible move upwards. (Which would signal a major market correction underway.)

In the attached image I realized the lowest trend line isn’t parallel to the other two but it’s close enough to be valid for my benefit. (Click Image to Enlarge)

ted-102709

Happy Investing from K the Investing Freak.

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