Thursday, July 08, 2010

The Case for DOW 4500 WATCH IT Unfold! - Week 10

Well, at this level we could expect follow through to 10,200 up to 10,300 as a this minuscule relief rally forces shorts to take some profits.  It will be interesting once Europe vacations start up how the market will react.  10,138 as evidenced by the chart is a critical level where that and the aforementioned levels represent huge confluence Fibonacci levels.  I would keep watching the European and IMF statements about the dollar, as there have been major efforts to talk down the dollar in the past month, as remarked upon in my Token vs. Economy articles.

As far status on the massive 20 head and shoulders of which we are at week 10 since the Goldman Top, we are still on target, for DOW 4500.  I continue to be an advocate of selling all rallies, as the economy still has a significant of gravity pulling it down.  10,197 is a minor Fibonacci retracement line, however being that this is a monthly chart it is still pretty significant.



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