THE DOT - if this turns orange or red be alert

Thursday, October 22, 2009

DOW update

On the left hand the monthly Dow chart and we will make some very simple but crucial observations.
We are still in oversold territory for now and need a few more months to get neutral at least. The strong support has hold as expected for now and we are heading for the 50% retracement at 10400 til yearend or Jan2010. In any case we will see a deep correction in the first half of 2010 testing the lows and even making new ones but just a few hundred points before we go back up to 11000-500 as the printing press will be in full force inflating the real economy in a time frame up to 2012 even. Within 10 days a 10% correction will be fast and furious til mid Nov. before the final leg up should occur.

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