The current rebound can be wave 3 or sub-wave iii or wave 5 as shown above. If the current up trend can break through the upper trend line with high volume, that will be good, please enjoy your ride towards 10,500. But four days ago Dow dropped with a volume of 8 billion, and last Friday Dow put on 96 points (1%) with a volume of only 4.7 billion, this is not a good sign. Watch out for the third case if Dow is unable to break the upper trend line. Under such circumstances I will definitely prefer to hold cash rather than stock. The thing to watch now is whether Dow can break the upper trend line with high volume.
Sunday, September 6, 2009
Dow - Monitor for breakout
The current rebound can be wave 3 or sub-wave iii or wave 5 as shown above. If the current up trend can break through the upper trend line with high volume, that will be good, please enjoy your ride towards 10,500. But four days ago Dow dropped with a volume of 8 billion, and last Friday Dow put on 96 points (1%) with a volume of only 4.7 billion, this is not a good sign. Watch out for the third case if Dow is unable to break the upper trend line. Under such circumstances I will definitely prefer to hold cash rather than stock. The thing to watch now is whether Dow can break the upper trend line with high volume.
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