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Clyde,
My more traditional chart work also shows a correction down to around
the 6200-6400 level using support, trendlines, etc.. If this happens it
will be a 100% retracement of the last upleg in the Dow. My question
for anyone who studies classic chart formations is this; if the market
does get down to these levels, does this look suspiciously like a head
and shoulders top forming? It does to me. If the market rebounds to
the 7100 area after the downturn, it would look to be forming the right
shoulder. I will be watching intently over the next couple of weeks. I
am currently out of the long side of the market completely. If this
formation pans out, and the right shoulder breaks the neck line, I have
a projection of 5130 on the Dow. Does this look correct to anyone
else? Hate to bet against this market, but it just doesn't look good to
me.
Good luck, and as always, any feedback is appreciated.
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