Aero,
Thanks for the post. As we know, one of the easiest things to read is a chart, in fact, it's the simplest thing on the planet to do, as long as you stay away from the "hard right edge" of the chart and never try to figure out what comes from off the edge. The 3 sources I was looking at, examining indices up to Jan. 24 and tryng to guess the stuff on the right side of the chart, were logical. The charts indicated down and logically the next place to look for support was down, some place lower. As I (and others) guessed, the uncertainty did continue until the Iraqi election, with some traders jumping in a little early at which point the rally did begin. What's interesting is that just when everyone is wondering hard how much farther the index can go down, it made the first little candlestick on a double bottom and prepared to rise as soon as "a significant wringing of uncertainty out of the market" occurred.
Message 20978566
Of some interest to TA people will be that the Dow decided to hold at the 89 ma. Now, the 89 ma may be an obscure device to some, but I think I've heard more traders discussing the 89 period moving average as THE average to watch. It provides strong support, and when it is broken it is similarly a strong message about the power of the move in question:
stockcharts.com[h,a]daclyiay[pb20!b89!f][vc60][iut!Ud20!Ll14]&pref=G |
