|
PureBytes Links
Trading Reference Links
|
Attached are three charts of the Dow Jones Industrial Average, the NASDAQ
Index and the TSX Index, respectively. The charts contain data from the last 3
to 4 years, but also include longer term trend lines, and are current to
February 24, 2004. I do not believe that the price action on February 25, 2004,
is of material significance to the charts or the dialogue set out below.
My comments regarding the charts are as follows:
DJIA
Line 1 is the bull market support trend line from 1982 to 2001 based upon
points in 1982 and 2001 following September 11, 2001. Line 2 is the original
bull market support trend line from 1982 to 2001 based upon points in 1982 and
1994. Line 3 is the posited maximum advance of the market from 1980 based upon
line 2.
Line 4 is a minor Fibonacci retracement from the 1998 advance to the 2000
high.
The lines labelled 5 are the original bear channel from 2000. Line 6 is the
revised upper limit of the bear channel.
Of apparent importance is the confluence of lines 1, 4 and 6, and the
tentative apparent downward reaction of DJIA from that point of confluence.
For what it is worth, and based upon longer time studies not shown, my
opinion is that, absent an economic event of fundamental significance, the DJIA
and the other North American markets are due for a correction, possibly of major
proportion.
NASDAQ
The lines marked 1 are the best estimates of the limits of the original bull
market from 1982.
The lines marked 2 are the best estimates of the limits of the accelerated
bull market from 1994 +/-.
The lines marked 3 are the best estimates of the limits the further
accelerated bull market from 1998 +/-.
The horizontal lines marked 4 are Fibonacci retracements from the high of
2000.
It is of apparent significance that the range between index levels of 2000
and 2200 was an area of support during the initial decline from the highs of
year 2000 and now may be a level of resistance.
TSX
The lines marked 1 are the best estimates of the limits of the original bull
market from 1982.
The black line labelled NL is a posited neck line for a major head and
shoulders formation, which was apparently confirmed by the price action in
mid-2001 following its penetration.
The left shoulder, head and abbreviated right shoulder of the head and
shoulder formation are labelled "LS", "H" and "RS".
Of apparent importance is the tentative apparent downward reaction of TSX
from neck line.
CAVEAT
I caution all persons who read this note, or who view the accompanying
charts, that I am not licensed to offer advice regarding the markets, and that
all of the foregoing is simply offered for what it may be worth, if
anything.
Tony Pylypuk
Yahoo! Groups Sponsor
ADVERTISEMENT
Click Here
Yahoo! Groups Links
To visit your group on the web, go to:http://groups.yahoo.com/group/realtraders/
To unsubscribe from this group, send an email to:realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
Attachment:
INDU 2004 02 24 r.gif
Description: GIF image
Attachment:
NASDAQ 2004 02 24.gif
Description: GIF image
Attachment:
Description: "Description: GIF image"
Attachment:
Description: "TSX 2004 02 24 r.gif"
Attachment:
Description: "Attachment:"
|