Discussion in 'Technical Analysis' started by myminitrading, Jul 22, 2006.
Another test possible, if it fails look out below
dow 10,700 more importantly represents the neckline of a monster head & shoulders ............. i just hope they let most get on board before the dam breaks......& not gap it down overnite.
just a matter of time IMO.
you can bet the PPT will be hard at work on that retest ,just like they were on the bounce.i watched 500 ym at 765 sit on the bid until they chewed away at it.10,765= dow 10,700......to help keep it afloat.
this last 350 pt. ramp up was the last gasp for air,imo.......the big boys used it to liquidate.........as they have been on every lower hi off the H & S right shoulder..........................we shall see!
smells like `98-`99 & LTCM all over again
$107 area on DIA is 2 year support & resistance also;
and starting area, year to date also. ES is more downtrendy.
And not a prediction ,if this turns out to be like 2000 pattern ;
may have a nice short covering rally 4th quarter,
$99 area could get tested also on DIA.
If you look at a 100 yr chart of the Dow, 68-76, look very much like today.
With 68 being 98, -22%, 73-74 being 2000-02, - 40-50% and and 76 being now?
Creating a nice inverted head + shoulders ..that led to 1982. Another quick 20% drop would complete an identical pattern.
This is probably happening now.
We'll see in a year or two.
interseting observation & funny how history always repeats itself......i`m a big fan of historical charts.
tudor jones had the template of the `29 crash & put it right over the `87 crash before it happened & it became the most exciting time of his life............i believe you could`ve done the same with the nikkie before it nose dived.
now the hard part................how do we fully capitilize...........should be fun!
For 15 years the ole Dow wondered in no mans land before breaking out on that 20 year bull run.
Another test or two of 7500 is needed.
Only 7 more years to go.
Here is the correct chart I meant to post
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