The Dow’s trend line from late June to early December has notably accelerated the past few weeks, taking the index into an overextended condition. Combined with the recent break of the 8 week trend line suggests a possible moderate correction.

DJIA breaks short term uptrend (2 Months)
(click for full size chart)


Source: Gary B. Smith,

The longer term uptrend is still well intact, with support coming in at 10,200 and 9850 on the Dow. We expect any short term correction, barring new information or events, to be less than 7%.

Random Items:
A Trade Miracle: Volumes Shift, Prices Don’t
CES 2004: Technology Trends
The big payday
How Parmalat Differs From U.S. Scandals
It’s hard to be a Bear these days
Is the balance of scientific power shifting?

Quote of the Day:
“Here is the conclusion on which I base my facts.
- Adlai Stevenson

Category: Finance

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

Comments are closed.