THE DOT - if this turns orange or red be alert

Thursday, August 19, 2010

DOW weekly update

We are trading clearly in this downside channel for now and the current upleg is done as expected turned tuesday - wednesday and is heading now for the 10000 handle short term. Weekly charts are turning south as well allthou─▒gh we might get some dressing for tomorrows expiration the week after will be a sell off week rather but we are entering a tricky time frame as MERCURY will turn retrogade from 21st to 12 Sep which means a lot of fake out moves in every direction and unreliable news flow. bottom line being heading down still but with a lot of short term swings and technical signals may be less reliable. the coming weekend has a higher probability for a shock event like an attack on Iran as the power plant will go online short after and the most likely time frame for an attack will be after mid term elections. short term keep selling any strength tomorrow as the weekly chart suggests we are heading for new lows around 9200-400 DOW mid term.

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