Thursday, October 15, 2009

DOW 9/15 UPDATE





A quick glance at the Dow and one could say we are very close to a major crossroad. The Dow hit the upper trend channel of the final Intermediate wave (C). This of course assumes the count is correct.

In addition to the trend channel, price is riding up to the 61.8% Fibonacci fan retracement. Could this be it? Who knows.

What is interesting is the new bullish counts that are out there. Though it is good to keep those counts in mind, I wonder if folks out there are now succumbing to the madness. It's like 1999 all over again.

But if the madness does continue, one may turn to the trend channels created with the larger degree Zigzag, in this case I am calling it an A-B-C and not a double ZZ (W-X-Y), which in the end really means the same thing at this degree.

I highlighted price targets if price chose to hit the mid and upper trend lines of the larger trend channel. The midline channel trendline intersects with the big bear trendline right around 11/13. The upper channel trendline intersects with the 78.6% Fibonacci fan right around 11/19.

These are certainly areas to keep an eye on.

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