Even the current top performer The DOW is topping out as we have a massive gathering of 13 counts which is always an indication of a top level. In Dec. we will make even a bit higher high since the weekly count is not finished yet but that is of an neglectable magnitude. We are in a severe topping out process which will be followed by a steep correction in the first half of 2010 and I still stick to the retest of the lows scenario. What we are seeing right now is what I had written about earlier a sector rotation - plus the bluechip rally - to quality as the Dow has become the top performing index. THe Dow runs into strong resistance around the 10400-500. The first wave up in the DOW was around 2400 and the second wave has reached now the same magnitude - Martin Armstrongs cycle is about the 8.6 month length, which gives us a time frame of end Nov. for this rally - lets see how that plays out.
Tuesday, November 24, 2009
Dow update
Even the current top performer The DOW is topping out as we have a massive gathering of 13 counts which is always an indication of a top level. In Dec. we will make even a bit higher high since the weekly count is not finished yet but that is of an neglectable magnitude. We are in a severe topping out process which will be followed by a steep correction in the first half of 2010 and I still stick to the retest of the lows scenario. What we are seeing right now is what I had written about earlier a sector rotation - plus the bluechip rally - to quality as the Dow has become the top performing index. THe Dow runs into strong resistance around the 10400-500. The first wave up in the DOW was around 2400 and the second wave has reached now the same magnitude - Martin Armstrongs cycle is about the 8.6 month length, which gives us a time frame of end Nov. for this rally - lets see how that plays out.
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