the dow 25/07/01 8:40 pm

ChartMan

Legendary member
5,580 46
Well last night's analysis came good, and I got 53 points in a limited trading session this afternoon. CMC had an internet outage and I bottled out and closed my position , and that took 3 telephone goes and 10 mins. Fortunately, the dow was fairly stable during this time and I lost only 10 points or so.Had they not had their dealing problems, I MAY have stayed long, and I would be up 100+ pts now :(.
Never mind. Take a look at the attached chart. It shows the Fib bands 23,38,50,62 and 82. Notice the arrows that point to the (approximate) touches at the various bands. Most action occured around the 82% mark.Notice also the distinct attempts at finding support and resistance at the various Fib. values.
As mentioned last night, the retrace below 23% was overdone (in my opinion), coupled with the positive divergence, leading to a predictable (!) rise today.The dow followed the Fib points with remarkable accuracy today,first finding resistance at the 38% mark, then support at the 23% mark, and finally going back up straight through 38% resistance.IF the DOW goes to form, it should now carry straight on to the 63% level (10,464) without too much trouble.
Let's see how it ends up....
 

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ChartMan

Legendary member
5,580 46
Well we closed at 10,400, on a solid rally with no sign of a sell-off towards close....There was a small decline in TA trends, but Stockastics was welded firmly to the ceiling (100). This ,unfortunately, leaves us slap bang in the middle of no-man's-land of a 50% retracement. Given the finishing strength ( albeit without + divergence) and dow's reluctance to hang around teh 50% retrace value, I guess tomorrow will be "More of the same Please".
 
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