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Jim Greening, all....
time allowed me only to follow your discussions sporadically, but it seems, presently there
is a very interesting situation that I like to comment:
When the S&P500 made new highs in the first days of October, I became very sceptic about a
possible further climb, since even after some days the DOW didnīt confirm the breakout.
As you know, the DOW couldnt reach new highs.
During the last days I checked the charts and indicators of many US-stocks. The result:
Literally everywhere you can find divergences between prices and indicators having built up
within the last three months. No matter if you take daily or weekly data.
Such divergences showed very good results (bullish and bearish) in my trading system when
confirmed by trendline-breaks in prices.
And - all of you know - the confirmation occured!
Even the highflyer DELL followed exactly the divergence/price-pattern.
So I am not as optimistic as Jim is (who uses much wider channels than I do) and expect a
further loss.
My expectation: The market could move up the next two or three days as a technical reaction,
but then there should follow a further loss to the next supports, i.e. 7600 DOW / 900 S&P.
And then..... we will see.
And to go back to DELL: At least down to 89.-, but I donīt believe too much in this support!
Too many people with high unrealized gains in their porfolio!
I wish everybody on the list to be on the right side next week..... where ever this will be!
Thomas
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