11/25/2009

Let's not forget

Let's not forget where we stand in the bigger picture. 10520 in the Dow is a very important resistance, and at the very least, I expect a few weeks downside from here.

The 3-day chart above shows that price is retesting a long-term downtrend line on $DJI. Also, Wave-C = Wave-A at 10,520, so the entire correction may be nearing an end. People seem to assume now that the market won't drop, and that the dollar will continue dropping. Good conditions for a contra-move.