22/02/2014

Comments DOW Friday close

Dow is in a very dangerous situation where a drop can start a new bear market.

Monthly chart has a typical monthly end picture with not even a test of the top.

The weekly chart 8 MA is down and the close came below the falling 8 MA which will continue down for a few more weeks.

The Daily chart says it all. The index must get above the resistance line at 16.238.5 during the coming week other wise I think it is over. The rising 8 MA will continue up only 2 more days then sideways to down. This is a head and shoulder formation now which is very dangerous if the 8 MA turns down next week which I think it will.

The 2 hr trend is down and Fridays close below the rising 21 MA is a weak sign. Monday and Tuesday will give the index a last chance to change this trend to up.

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