Hi Richard,
"You do a great job on the charts. I have to get his book. Might give a little narrative on what method is predicting. I am guessing the naz is headed up, dow may go lower. RUT may be a better index for the stocks most deal in. "
Thank you for the kind words....
I have given a narrative to Nas, just before this post on this thread. As for the Dow, we could come down to 7350, maybe bounce a little and return to 7200. Some of this depends on the rate at which we fall, but I do think we need to test previous lows before any viable move occurs.
Looking at Gann retracements, the 3/8 retracement is 7580 and we hit that Friday. The next major line of support according to Gann willl be 7327, which fits well with this discussion. The 5/8 retracement is 7074.
Having said all of that, if you look at the weekly (and to some extent the daily) we could be in the second shoulder of a reverse H&S. If the neckline is at 8200 and the head being at 7000, the difference being 1200. 1200 plus 8200 puts us at 9400.... Yes Virginia..., there really is a Santa Claus...
Seriously, I think we're in a failed triple top and coming down to gather support...
I do like your suggestion for the Russell 2000... I will be adding it to my web page... thank you.
-- Gt -- |
