Action:
The chart above is the Dow Jones Industrial Average weekly and this is iteration II. Technical analysis is precisely for this reason, not a perfect science, but an art and what catches the eye. Hence once needs to observe the chart and the better it is if multiple charts tell the same story. And with time one becomes better. I hope to get there one day.
Anyways, the DJI weekly has been in a downtrend channel since June/July of 2007 -- surprise (?) -- it was then that the first bear stearns hedge fund went under.
Guess:
One needs to look at many charts, all possible patterns, multiple indicators before before making a trade. Sometimes, the patterns shout out from the rooftops, other times they are sneaky. With the chart above, the channel is somewhat furtive.
Bottomline:
Whichever way we cut it, this market seems due for a bounce to 12500 in the months of july-august.
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