Discussion in 'Trading' started by traderdon56, Oct 19, 2006.
Exactly 19 years to the day from Black Monday, the Dow closes above 12,000.
The DJIA hit a new high just before Oct 19, 1987.
almost 70 days and not even a 1% drop in the dow. hmmmmm
No matter how bad things appear in the economy this market is not ready to drop YET. Personally I don't believe it will have a chance of dropping significantly until the s&p gets above 1400.
resistance = opportunity.
up or down, does it matter if you wish to profit from the opportunity? maybe not. market maybe go down now? easy to tell if resistance breaks and short side not working? could be.
does every opportunity work? no. is this one good? perhaps. you decide.
all other recent tops had clean and clear short term divergence between basic indicators and price action, but this 'top' at resistance does not. what does it mean? resistance will end up breaking? ignoring the indicators, it does appear to be a semi-decent confluence of resistance....
ULPIX - Profunds Ultrabull
NDX - Nasdaq 100 Index
IWM - Russell 2000 iShares
<img src="http://img218.imageshack.us/img218/5974/11192006spxdailytu0.jpg" border="0">
<img src="http://img140.imageshack.us/img140/9885/11192006ndxdailyek6.jpg" border="0">
<img src="http://img152.imageshack.us/img152/8382/11192006iwmdailyui6.jpg" border="0">
I really dont see a buying opportunity until around DOW 11700, which im going to predict we see mid to late November.
The high it hit was two months before 10/19/87.
Separate names with a comma.