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Hi all,
after my first mail on the DOW, it seemed that it would try to break the bearish patterns
just being built. If it had succeeded, this were even a bullish sign.
But now I think, everything is open again.
The market is moving towards the point of decision: Will the bearish patterns (S-H-S) in
some indicators be finished and the US-Stocks start a descend? Or will the DOW be able to
break the patterns an leave them climbing?
Since several of my indicators have reached overbought levels, there shouldnīt be to much
potential for rising prices, but on the other hand, the DOW an S&P500 show an admirable
ability to recover after significant intraday losses.
Best example: Last Friday!
So I will just wait and see:
1. If the Divergences and S-H-S patterns fail, then the markets could move up to somewhere
of a DOW of 9000 / S$P 900.
2. DOW / S&P break there supporting lines, they may descend to DOW 7800 / S&P 900 or
even 880.
But I donīt expect a "Crash", as long as the bond yields stay around the present levels.
Criticism? Agreement?
Thomas
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