Monday

Low Breakout Dow Jones

1 Comment February 23, 2009 – 8:45 pm |   | Permalink |  Print This Post |

Not quite low break out yet, but I believe we probably need one to get this over and done with. Looking at our chart, it still has not fulfillled our Knockout Theory. This compressed spring has more to go. our 7155 long position got hit at $5/point. Whilst not convinced we have seen the worst, this falling knife continues to slice past all endeavours to catch it. We lower our other orders to open to $10/point at 6870 - which is unlikely to be reached tonight. The morphology of the chart suggest a further sharp drop to reach terminal velocity, then stabilize, and suffer further subsequent decay of 50-100 points. Perhaps a fall to 6950 sharply, then a more gradual decay to 6850 to complete the downward complex. At that level, all bulls should have died.