Where now for the Dow?

Marc100

Member
67 0
Hi

On Friday the Dow broke through the resistance at 8521 and out of my ascending triangle so I should be happy......but I'm not!

Also I'm unable to find any Indicator's/Oscilator's or other pattern's to back up my theory.
I have found a possible Inverse head & Shoulders starting last December but as it hasn't completed the most recent shoulder then it's not technically anything yet.

1) Can anybody see any favourable Indicator's/Oscilator's or Pattern's?

2) What next for the Dow?

As a footnote to the above. I spoke to some City Trader's last week who said their Wall Street counterparts were waiting for a "break above 8525 for it to fly!". ( 8525=futures Trader's)

Kind regards

Marcus.

PS: How do I add an image?
 

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ChartMan

Legendary member
5,580 46
Breaking through 8521 is only part of the story. The DOW has to move out of the channel to indicate and serious change of sentiment. There are a lot of options. I've never been one to care too much about where a particular instrument may go. What is important , however, is to have an "if-then" plan of action.
If the dow breaks above 8600, then go long.
If the dow breaks below 8400, short everything.
Etc.
I see no point in dithering around trying to second guess. Far better to formulate a plan and see how the story unfolds.
I've said it before- the DOW comp. forcasting next week's close is a guessing game with just a touch of skill. My feeling is if you can get the direction right, you did well. If some of you think different, I respect that.
 

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Les Carlin

Member
58 0
I've said it before- the DOW comp. forcasting next week's close is a guessing game with just a touch of skill.
I couldn't agree more. As you suggest, trading is an if-then business and not a guessing game. I worry that competitions that require forecasting can create a false impression of which skills are important in trading and which are best resisted.. I'm completely crap at trying to guess "where next" with just about any market. But i do know what i'm going to do in certain given conditions, and what i will do if those conditions change.

Les
 

Marc100

Member
67 0
Thanks!

Thanks for the response guy's, much appreciated.
I haven't got the confirmation I was looking for so I'll have to keep on stalking it.

I mentioned in my first post that I couldn't attach an image. The reason was I was trying use a bmp file extension, so I've changed to a gif.

Kind regards
 

LORD JAMLA

Member
98 7
Marcus, though have not been reading thy Elliott Wave bible. Athiests shall be sent to the dogs and shall not profit from movement in the divine measurement of man's emotional senses.
You have correctly identified an ending diagonal, oh pupil of the truth, but must learn that they are typical of flase breakouts in the 5th wave position. The wise ones know that soiled underwear shall become more common in the next two months.

'I shall be speaking to my agent first thing tommorrow morning. I've been in cooking 30 years you know.'
 
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