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Wednesday, May 20, 2009

The DOW Sell Signals

I am not the most super TA guy around so my attempts at identifying "sell" signals are not always right. Kenny taught me most of what I know because I study his TA charts with eagerness when he was updating them more frequently.

However the DOW has some consistent bearish patterns on all its indicators from the looks of things. It doesn't mean this market is headed to new lows as people keep emailing suggesting that "wave 4" is finally over. I do however see this as a nice spot for an [X] wave pullback.

There are several potential support layers for the DOW. I like the 7800 - 8000 area roughly.

I mean c'mon, EWI showed a chart where trailing 4 qtr P/E ratios were approaching an all time high of 60!


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