THE DOT - if this turns orange or red be alert

Thursday, July 31, 2008

technical update

The Dow chart on the left shows the clear developinp ABC correction pattern. We entered wave C (new moon) up which will bring the DOW up to the 50% 12000 - 61.8% 12250 zone. SPX the reference levels are 1325-1345. Many indicators are very oversold fueling the short-covering momentum for the time being. NDX is a bit different animal but with the same basic momentum - we made the minimum requirement test of 1800 and are finishing a invers Head Shoulder pattern with neckline at 1860. The upside potential is 100 points and a test of the gap/lap zone 1900/35 is due to be closed. This upside move will be brief and around 5th august markets will with a high probability turn dow again and test the lows thereafter.
Oil has as expected finished wave A down and is now in wave B up heading for 132 before dropping in wave C down to 100/110.

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