This is my attempt Part I to figure out the current, bizzarre formation on Dow Jones Industrial Average. Today it ended up 28 points thanks to the usual last hour mysterious push out of nowhere, but until then it was set to end very close to the unchanged mark.
As I said in my prior post, I don't think I've ever seen the 6 consecutive trading days of hardly any change from day to day, which resulted in "doji" candlesticks. Is this the sign of a top of the market, or a bottom of the market (I know, we're already off March low)?
As you can see, September 08 chart has no resemblance to the current June 09 chart.
- RSI does fluctuate.
- Index movement is zig zag, not flat-lining.
- Index moves up and down huge.
- Volume varies, and money flow varies.
- Stochastics moves quite a bit, not flat-lining.
So my tentative conclusion is that the current formation does not indicate a top. I'll look at Dow Jones Industrial's October 2007 market top next. Stay tuned.
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