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Clive....
I agree with your assessment that the group seldom looks at chart patterns,
the old basic technical analysis approach. I would be curious to know if
there are any "oldtimers" in our group who rely on visual chart pattern
interpretation. If so, why don't you speak up....maybe we can get a dialogue
going.
Regarding your wedge pattern comment on the DJIA, going a step further, if
the DJIA does not hold the 7580-7600 area, it breaks down from a descending
triangle which gives a count to the 6900 area. I am not saying it will do
that, but the pattern is there if it does.
It is interesting that the blue chip DJIA has been outperforming the NYSE
Composite Index for about three years now. Recently, this performance
pattern has broken a long term uptrend line. This tells me a definite change
has taken place in the markets. The mid-cap and small-cap stocks should now
be the better performers while the large-cap or blue-chip stocks will
probably be under performers. I think you can see a confirmation of this in
the small-cap chart patterns. Many of them are in or coming out of large
basing patterns.
Jerry
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