Dow 2009

The Dow Jones Industrials Index fell out of bed on July 2 on the basis of a terrible unemployment report. In so doing, it left in its wake a tall black Candlestick bar, which denotes a decline of 223 points on the day.

This followed an outside-down day on June 11 which bearishly engulfed the "real bodies" of the nine - count them, nine - preceding days, as well as a bearish "Evening Star" pattern in the Weekly chart of June 19. These devils are having their effect and are up to no good.

The capper is the emergence of a bearish "Head and Shoulders Top" formation. On July 2, the evil black Candle dove to close at 8280.75, which is within ten points of the Neckline. The noose has almost closed. Please see the accompanying chart.

If this Head and Shoulders Top formation continues to develop to completion, it will thereby be forecasting that the Dow will decline to 7614.
 
nice chart Kutero - even I can read that one. Yes I think if I had a long on the Dow I would be looking to close it pretty quick.
 
le-pendu-the-hanged-man.jpg
 
I think every sane person in the world is wondering what in God's name is going on, a pullback seems LONG overdue but to be honest I wouldnt be suprised if the big boys let this dip and consolidate to 8950/8980 support, beartrap and then let this thing fly to the moon.

I'm totally bearish fundamentally btw but don't let that influence you. This market is MENTAL.



Thanks for the charts Kutero!(y)
 
Just experimenting and for the record I have the week starting 5/6th of August as being of significance for turns. I'm expecting a down turn too but not certain.
 
Atilla said:
Just experimenting and for the record I have the week starting 5/6th of August as being of significance for turns. I'm expecting a down turn too but not certain.
Click to expand...

Where have you been Atilla? Is everything ok?
 
vinicius said:
Where have you been Atilla? Is everything ok?
Click to expand...

Just very busy with work and moving house. Trying to do my bit to get the economy moving again.

It's a bit like pushing at the rear end of the Titanic :cheesy:
 
Anyone have any thoughts on the possible broadening formation showing on the chart now? We have an expanding triangle with decreasing volume on the way up. All indications of a topping formation.

If confirmed, could see 9250 as a possible top at the rising trendline with a powerful move down to 8000.

Having said that, how many bearish reversal patterns has the market blasted through already?

p.php
 
You know what they say about sharp moves...

I'm no professional but as far as I'm concerned this move has been overdue we dropped a range at the end of may after momentum started slowing, probably due to profit taking by for the long term holders (affecting the index as a whole). This looks to me like a correction brought about by shock earnings from the banks etc. Would have to look at the sectors and weightings to get a really good idea of what's driving up. Could be the "Sell in May"-ers being taken advantage of as we've seen ridiculous drops since last year.
Whatever the case these are critical levels to re-test as a gauge of overall strength although I think 95 is coming soon I'm watching the PA for a move to 88-85 first depending on how much difficulty we see at 90 if support fails.

Edit: All depends on how you view the market. I've lost money over the past couple of months trading against the macro trend so I'm going to try the approach of going on what I see happening in the now rather than what I think will happen in the future
 
Yup life is good hope all is well with you. Just thought I would take a look in on the site
 
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