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Thursday, September 9, 2010

Dow weekly update

The Dow was stopped by the 200 day MA for 3 days but will break above today heading for the extended target of 10600 which should be reached quite - quickly 2-3 days. The little correction I expected lasted not more than 24 h and we are in a desperate situation of deceptive DC and underperforming hedge fundmanagers to drive this rally. Still at 10600 we will run into strong resistance and a stronger correction can be expected next week to the 10300 -350 area. The Dow should run a volatile zigzag the next 2 weeks between 10200 -600 before pick up the downtrend again. actually it will even be more complicated in October as the real downtrend will not resume before November - more on that as we progress but for now this is rather a traders market with an upside bias for another 2-3 days.

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