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----From my perspecitve,..I am cautiously
>optimistic into next week for the following reasons
Personally I am not so optimistic, pehaps because I see rising wedges everywhere.
The picture you see in the enclosed gif makes me really pessimistic,
The wedge was broken upside without followthrough, but rather a sharp decline followed. this was a magnicent failure.
These failures in wedges, in my opinion, is a setup for a break the other way, wich we also got the on the 24th, a feeble pullpack followed and yesterday we had an impressive bearish engulfing candlestick pattern and a close below the lower trendline for the 2nd day.
As far as I can see, we have opened below yesterdays open.
One could also argue that we are in a wave 3 decline, wich usually shows violent movement , which is also the case in breakdowns from rising wedges.
Fridays also tends to generate wild moves.
Is the upper trendline correct - yes, in my opinion, see how it has been touched 4 times with a parallel line touched 3 times confirming the validity of the line.
perhaps we will see 100000 sooner than I though when doing the other wedge study on the dow some time ago?
regards
Stig
Attachment Converted: "f:\eudora\attach\spwedge.gif"
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