At the close of Monday trading, Dow dropped 103 points to 9908, 1% below the lower trendline and the crucial 10,000 level. Is Dow heading for the Big C ? I would say the probability of forming a big C is getting higher and higher. 1% below the trendline is considered marginal, I wouldn't want to rule out the wave (IV) option at this moment but one thing is for sure, it is advisable to hold more cash instead of stocks and watch closely whether Dow will go below 9712, its wave 4 low on October 30 for a major trend reversal.
Monday, February 8, 2010
Dow - 1% below the lower trendline
At the close of Monday trading, Dow dropped 103 points to 9908, 1% below the lower trendline and the crucial 10,000 level. Is Dow heading for the Big C ? I would say the probability of forming a big C is getting higher and higher. 1% below the trendline is considered marginal, I wouldn't want to rule out the wave (IV) option at this moment but one thing is for sure, it is advisable to hold more cash instead of stocks and watch closely whether Dow will go below 9712, its wave 4 low on October 30 for a major trend reversal.
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