Darvas Box Patterns in The DJI
(C) 2013  William Schmidt, Ph.D.  and  www.tigersoft.com 
4/1/2013
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The DJI now is locked in a Darvas box, a flat rectangle. Usually the pattern
leads to a breakout upwards;  The odds of an upwards breakout are about
3:1 with stocks.  But there are some precedents for a rectangle box pattern
with a flat top bringing a decline.  These patterns usually take about a month
to resolve.   Below are all the cases I could find of this length pattern since 1915.

Upside flat top Breakouts from rectangles 4-6 weeks long.:
  July 1925
  April 1927
  October 1928
  November 1928
  August 1929
  Nov 1942
  May 1943
          19
  March 1954
 April 1959
 April 1983
 Feb 1986
 Nov 1995
 Jan 1996

Rectangle patterns and reversals down
January 1956
January 1962
1976 - but this rectangle lasted 7 months.
1980 - but this rectangle lasted 7 months.
July 2007
Jan 2010
April 2012
Oct 2012

2013