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Wednesday, 03 December 2008 11:49:56 GMT
Written by Jamie Saettele Senior Strategist, John Rivera Analyst
Full Article
The drop below 7500 likely completes a 3rd wave within a 5 wave decline from the October 2007 top. Over the next several months, a 4th wave (corrective rally) is expected to unfold. Resistance is in the 9160-9650 zone (11/8 and 11/4 highs…the 38.2% of the decline from 13137 is in this zone as well).
The Dow found support and may be forming an inverted head and shoulders, which could lead to a test of 9,500. However, further losses today could signal the resumption of the current downward channel.
The S&P count is the same as the Dow count. The decline to 741 probably completed a 3rd wave within a 5 wave drop from the October 2007 high. A corrective rally then is probably underway towards the 955-1008 zone (the 38.2% of the drop from 1440 and the 11/8 high).
CFDTrading.com provides free news, trading resources, and market analysis to the trading community.
Written by Jamie Saettele Senior Strategist, John Rivera Analyst
Full Article
![12-03_CFDTECH1.jpg](/proxy.php?image=http%3A%2F%2Fwww.cfdtrading.com%2Fexport%2Fsites%2Fdailyfx%2Fstory-images%2F2008%2F12%2FCFDTrading%2FUSTECH%2F12-03_CFDTECH1.jpg&hash=42b0346822701260bc247f48392ce03d)
The drop below 7500 likely completes a 3rd wave within a 5 wave decline from the October 2007 top. Over the next several months, a 4th wave (corrective rally) is expected to unfold. Resistance is in the 9160-9650 zone (11/8 and 11/4 highs…the 38.2% of the decline from 13137 is in this zone as well).
![12-03_CFDTECH2.jpg](/proxy.php?image=http%3A%2F%2Fwww.cfdtrading.com%2Fexport%2Fsites%2Fdailyfx%2Fstory-images%2F2008%2F12%2FCFDTrading%2FUSTECH%2F12-03_CFDTECH2.jpg&hash=5d8764a9c373082a190d288f55b685fa)
The Dow found support and may be forming an inverted head and shoulders, which could lead to a test of 9,500. However, further losses today could signal the resumption of the current downward channel.
![12-03_CFDTECH3.jpg](/proxy.php?image=http%3A%2F%2Fwww.cfdtrading.com%2Fexport%2Fsites%2Fdailyfx%2Fstory-images%2F2008%2F12%2FCFDTrading%2FUSTECH%2F12-03_CFDTECH3.jpg&hash=da533f2ea71908b44bfb707b94e70108)
The S&P count is the same as the Dow count. The decline to 741 probably completed a 3rd wave within a 5 wave drop from the October 2007 high. A corrective rally then is probably underway towards the 955-1008 zone (the 38.2% of the drop from 1440 and the 11/8 high).
![12-03_CFDTECH4.jpg](/proxy.php?image=http%3A%2F%2Fwww.cfdtrading.com%2Fexport%2Fsites%2Fdailyfx%2Fstory-images%2F2008%2F12%2FCFDTrading%2FUSTECH%2F12-03_CFDTECH4.jpg&hash=f7165e2c14dda0f740ee1563ae1a6bbe)
CFDTrading.com provides free news, trading resources, and market analysis to the trading community.