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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
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.