H&S on the Dow?

Discussion in 'Trading' started by Loukas, May 30, 2002.

  1. Loukas


    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.


  2. ron2368


    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.
  3. TAfool