The DOW this week 03/09 - 06/09

ChartMan

Legendary member
5,580 46
From Friday, things looked unclear.. Phase was divergent, but there was an ominous Bear flag target of 8300....With manufacturing figures down, the inevitable came to pass. Down, down, and more down, right to 8300.Whoever says you shouldn't look at charts and be swayed should maybe think again. True, generally, but it doesn't hurt to be well informed and prepared for what is to come. Seing the obvious down at the start of the day, doesn't it make sense to remind yourself of the Bear flag target of 8300? Is that another Bear Flag that has developed at the end of the day? If so the target is around 8100. Phase is hammering the bottom of the channel. RSI and CCI made harder lows and no sign of upside.Closed 350 odd points down of which 150 went before the open, leaving 200 odd in the pot for grabs.
 

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ChartMan

Legendary member
5,580 46
Strange how things just turn around .....From looking at 8100, it now looks like a return to 8700 could be within reach.From Phase breaking the down channel, it has now broken out to the upside. As it turns out, RSI was showing positive divergence from yesterday which I dismmised in favour of Phase. Holding on to 8400 tomorrow is a pre requisite to moving on up....
 

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ChartMan

Legendary member
5,580 46
This thing is going up and down like a ******** :) I give in thinking about where it may be heading......Yesterday had "up" written all over it and today it tanked.So maybe it's as you were and 8100 here we come.Still , I did say 8400 had to hold to go up and the futures opened 150 odd down. Seems like we're in turmoil. The rounded top is still encompassing the price and a clear 2 slope change could spell much more down if we need the usual 3/4 slope change to come off a bottom.
After all that gloom and doom , except for the shorters,Phase is strongly divergent now and that is the one indicator I have faith in as a "predictor".That is still being supported by RSI and CCI. Toss a coin? Heads I win, tails you lose. :)
 

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ChartMan

Legendary member
5,580 46
It was heads. :) More surprises. This time 150 points up at the open. I said I had faith in Phase...the long term Phase downtrend line is now broken and an uptrend established, but the price has still not managed to break out of the down trend,sitting just below resistance. Up channel support is at 8344 and res at 8530.
We've developed 3 slope changes and that may be enough to call a bottom.
 

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