Basically there are two schools of thought amongst the Wall Street Gurus on US economy. The optimists believe that the worst is over and the pessimists are looking for a double-dip W-shaped recovery.
Similarly Dow is at a crossroad at the moment. If it can hold above the lower support line at around 10,000 level and can start to turn upwards, then it is going for its wave (V), heading for 11,000 and above .
However, if Dow drops below the lower trend line, chances are it is heading for its 2009 low of 6,547
The technical indicators have shown clearly that Dow's current correction is, at best, of the magnitude of that in June 2009 of about 7.4%.
The moment the technical indicators start to develop multiple lows with Dow unable to break its January high in the next technical indicator's peak then a major A-B-C formation will be the only outcome.
1 comment:
Even the Dow goes up , can our stock market go up together when Anwar's sodomy 2 trial is going on ?
The trial is getting the coverage by the Wall Street Journal like the article below :
- The price I paid for Malaysian ' Justice'-
By MUNAWAR A. ANEES, Wall Street Journal
http://malaysia-today.net/index.php?option=com_content&view=article&id=29975:the-price-i-paid-for-malaysian-justice&catid=17:guest-columnists&Itemid=100130
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