The Dow Jones Industrial Average (DJIA) price is back to the 4×1 descending angle of the 1982-2007 range. This level has stopped price throughout the bear market.
The 2002-2007 range is almost back to the 1×1 ascending angle which usually will provide significant resistance from this setup.
Price has been retracing the bear market at the same slope as on the way down. A break below the 1×1 angle would indicate a significant correction in time, if not in price.
Ok guys and gals I have a final count on this baby, but things don’t make sense so I went blogging, I am in a big hurry as usual gotta get to this show, but everyone this one has me stumped, all my indicators say we should have already started a drop, so Iike I said went blogging, most everyone is in the same boot camp that I am in, we are holding some bear moves SDS, QID, please do not buy the 3X stocks, they are just too risky for the ave. trader, they are fast $ at times but this time is not the moment to get in stuff like that, enough of my motherly side, OK everyone else has the heebies too, we are stumped this could go either way, I say itsa bear trap, just my gut feeling, don’t know why thats all I can say, but we need to finish this wedge out with a bang, but remember in O7 how we fell before the big rally??? we could repeat the same scenerio here. Just hedge your trades for now till this thing figures out up or down. We are overdue for that big drop, don’t rush in and get killed, the S/P needs to break some #’s like 1000 again before we start thinking like a bear….gotta run be careful. L
Andy nice charts, thanxs for all you do…have a nice wkend. L
Fever is running very high, and they are saying that nothing will bring this market down. I think someone is in for a very big big surprise, either the remaining few bears, or the masses of bulls. History has been with the former’s side, but how do I know that Bernanke (or his bank buddies) will not change history
You know A, and L.? Here’s my consiparacy theory. The banks are using their liquidity to prop the markets and eventually they will have to distrubute and take the huge profits to pay off their toxic assets. They survive and someone else will be holding the bag now.
Did you guys check out LQD, it either decoupled from market or is a leading indicator of something. I see a top in LQD.
r – All the bonds sold off today. Seems to be the nature of the bond market. There are a couple huge spikes in yields during the year and then a return back to the trend. I noticed this many years ago and it plays out every year. I’m not sure why, but it looks like a number of owners want out all at once. Maybe it is tied to portfolio rebalancing and fixed time boundaries. Beats me.
Libby – I think this market will run out of gas and sputter around trying to make new highs before rolling over. Huge liquidity coming from somewhere. Ray’s conspiracy? Or the secondary market remains strong as long as they find buyers – which they will as long as the market holds up. You would think the dumb side of Wallstreet would catch on after 10 years of this game. Guess that is why they are the “dumb” side. Volume sucks in the market so it is lack of sellers holding it up, not a great buying frenzy.