DOW

my view is that it could still be forming the right shoulder of a head and shoulders top. The only time that view will change is if the dow can break above 13661.
Thats the level ill be shorting the dow with a 40 point stop as that area is quite important.Obviously on first attempt basis,but if it is a true head and shoulders then it should not really go that high .
For the short term if this finishes above 13366 then expect the recent highs to be tested.

so
up above 13366
down below 13100

DOW is now hanging around at the support point, could this be a 123 scenario





www.dropbox.com/s/wp2yw4y5qap4dnk/Dow%2015m%20123%207.1.13.gif

Views welcome
GL

Has played out to below 23.6 fib so far, will it go as far down as as the 38.2 fib and then continue upward????

there was a great level to go long on first attempt .
been busy so missed this trade
there will be others

If you look at the chart you can see how the short term trend line that was breached back in november 7th is now acting as resistance. The price is following that line
The dow looks like its losing its momentum and there is an obv divergence on this as well.
Ive also noticed recently that there seems to be a lot of false breakouts around with shares so wondering if we are near the top????
What ever happens i will be shorting the dow if it gets near 13662 with a 40 point stop. Personally im not expecting this to go to that level as im expecting the right shoulder of a bigger head and shoulders to form .
The key to beating the dow is not to trade it all the time. You should be patient with the dow and only really trade it of important levels . Patience is the key to this index. If you over trade this then it can wipe you out.
DYOR

Remo, what is the time scale on this downtrend for the DOW and how does one short, never done it yet? Being overseas I only use one online broker who will accept overseas residents, had to close down TDW (EU residents only) and Selftrade (UK residents only).

Remo said:-

"Ive also noticed recently that there seems to be a lot of false breakouts around with shares so wondering if we are near the top????

What ever happens i will be shorting the dow if it gets near 13662 with a 40 point stop. Personally im not expecting this to go to that level as im expecting the right shoulder of a bigger head and shoulders to form."

Published on January 16, 2013 (the latest French (anti-USA/UK) economic speculation of downturn in 2013 (March - June Quarter):-


www.leap2020.eu/GEAB-N-71-is-available-U...e-global_a13066.html

Nice S&P 500 chart, long article and only shows part of release, have to subscribe for rest.