THE DOT - if this turns orange or red be alert

Thursday, May 20, 2010

DOW weekly update

The DOW weekly runs in perfect accordance to resistance sell levels around the 200 week ma and trendline combined with the bearish divergence. the astro picture remains bearish over the next weeks hence the trend has plenty of scope to drop further. we will very likely see a stronger bounce from the 9800-10000 to 10700-800 even before triggering the next round. so far the bulls just take this as a healthy correction as most cheerleaders of the goldilock camp are still chanting their mantra of cheap markets and liquidity - wonder where that is these days.
hence no capitulation in sight and the media does not report in negative sentiment yet. quite the contrary they had just praised the strength of the phony economy with very bullish covers.

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I am a professional independent trader