Unfortunately I didn’t have time to make some postings a week ago while the Dow Jones was >12,000. Today (August 04, 2011), we are seeing a >200-300 point drop in the Dow Jones Industrials. Fortunately I did take a couple of “snapshots” last week of the Dow Jones Industrials and S&P 500 (@YM & @ES respectively) prior to the current plunge.
These are basic “technical” charts. I have put montly/weekly/daily charts thus one gets the long/mid/short-term “pictures” respectively. Looking at the Dow Jones Industrails (@YM), we see multiple tops – even possibly a “double top”. There has been a lot of resistance around the 12,700 in the Dow Jones Industrials and around 1370 on the S&P 500. Notice how the MACD (differential) on the monthly and weekly chart has gone negative while the MACD (differential) on the daily chart is starting to “roll-over” as well. Are we in a “bear market”? Possibly, however notice how the moving averages haven’t “crossed-under”, especially on the montly and weekly charts.*
*-Of note, as of August 04, 2011, the Dow Jones Industrials and S&P 500 have moved below its 200 exponential moving average (they were below the 200-EMA as of August 02, 2011). This is quite bearish for the markets. 
Tags: double tops, Dow Jones Industrials, resistance, S&P 500
October 19, 2011 at 5:07 am |
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October 19, 2011 at 2:54 pm |
Gigasphere,
Thanks for the kind words. I’ve been quite busy with work and haven’t had the time to post on my blog. Hopefully I’ll be blogging more and putting more charts/ideas.
Thanks!