I2,
If you look at the highs in August, October, and December then you can see the three previous points of the neckline, around 8200.
Also, and not directly related to the H and S pattern, there are so far four trading waves from the October lows. Two up waves and two down waves, the last down wave just completed this past Friday. Each wave has a higher high and a higher low. Each trading rally measures about 800 points or so. This projects the next rally off Friday's low to be around 8400, it could get close to 8600.
All this having been said, there is such great bearish sentiment floating around these days that there is the temptation to abandon one's reliable indicators for prevailing emotions. But, I believe that would be a dangerous and grave error in judgement. So, until the DOW breaks the October lows, this bull market is still intact.
GZ |
