The Dow continues to trade in its downwards channel. As the chart below shows, each cyclical top has been followed by a lower low. The key as to whether this pattern can be broken would be a higher low (in circle with “?”), possibly leading to a break of the upper downtrend line.

Dow Industrials (Feb – Oct 2004)
click for larger chart
Arms_dow_chart_october
Source: Arms Advisory

The sharp downward move has penetrated the lows of late September. The vertical blue lines indicate the very regular cyclicality of the tops. The ellipses are indicating the bottom of each cycle.

Random Items:
Who will the next president name to the key posts?
CGES: OPEC pushing limits of oil production capacity
New Voters’ Impact Debated
China’s Golden Age
How bin Laden got away
The Birth of Supply-Side Liberalism

Quote of the Day:
The test of success is not what you do when you are on top. Success is how high you bounce when you hit bottom.
-General George S. Patton

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.