Hey all, This is actually my first post, I wanted to hear some opinions about the following: The Dow seems to be forming a H&S formation, and it is testing the neck line currently. If broken, this formation gives a target of 1000pts below, at about 8800. Since "the trend is your friend" in cases like this, I would like to hear some further opinions as to whether we are headed into a significant bear move. Regards, Loukas
Whatever its doing it is at that lower trendline amid dropping volume. The monthly is more interesting to me, a multiyear top with a failed rise-summer 2001- then the decline of Sept 2001, now a return to the lower trendline/neckline, 10k is currently the magnet. Though I track it, I try to put more credibility into the bigger averages like sp500 and nas compx. I think the dow has been holding the mkt up when at times it looked to fall . The dow is the only index I track that has not given a monthly sell thats into its second month. Actually no month or weekly sell signal yet. The dow is so out of tune with everything else I look at thats why I hate it( but thats why I keep using it). That said I think there is tremendous pressure to keep stocks up in general. Thats why the Merrill stuff got settled in like 2 weeks.
Increasing volume on the downside, decreasing on the rallies. Doesn't really look too good http://home.earthlink.net/~dbradford1/Charts/DOW053002d.gif Regards, TAfool