13/11/2011

DOW Friday close 12.153.1. What is next?

Daily chart of DOW to the left and 2 hr chart below.
The question is if all the news are priced in or not. Will the market take out the final high at 12.284 in the uptrend that started Oct 4 and how high will it go after that. Or will the Dow just stop where it is now.



Mario Monti, Italy and Lucas Papademos,Greece are the new technocrat leaders and are not interested to save a political reputation. Austerity programs are in place. Mariano Rajoy, Spain will be elected next Sunday and have told his countrymen that it will be very hard times the next year or so

These three countries are in a new situation with the people behind them so far. How will it play out? Can they make it ? I think the markets will give them at least a month to try. The technical picture still points to mid December or the beginning of January for turning down, unless we take new highs from here.

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