Dow closed its Thursday session dropping 19 points, unable to break the 11,000 level. From the candlestick, selling is well absorbed, but the buyers are not willing to push. Since the index is able to remain close to the upper resistance line, the bull has a slight edge over the bear. The question remaimed, has wave iii ended.
From a longer term perspective, I am still talking about the last wave iii, iv and v of the wave 3 of mega wave B, the end of B, the end of the bear market rebound that began in March 2009 when Dow reached the 6,547 low. As usual, there are bull and bear talks out there. There is also the decoupling talks out there on whether the Chinese, Brazilian and Indian markets will move in a different direction to the US's market. I think this is only possible under one condition, the Dow is not heading for the mega wave C where it can go to 5,000. It is good to be cautious, so to me it is the mega wave B that I am looking at until such time that I think I am wrong.
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