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It is time to update this forecast I made in June
for a significant low in the DJIA around 10/13/05 as we are within four trading
days of that date. As you can see the Near Impulse Forecaster is projecting
possible change in trend dates for tomorrow, 10/8 and 10/20(vertical lines).
Since price has penetrated the bottom of the daily channel and being within one
day of the forecast date, I would expect a low tomorrow and a reversal to the
upside. Support could come in at the 7/9 low of 10175. Adding to this view is a
large number of individual stocks forecast for reversals in the next three days
as well as the Russell which is a good surrogate for the total market. Contrary
to this view is the weekly chart which has not yet reached its channel low and
has not given a buy signal.
An alternative view is for a consolidation for a
few days and a final low in the 10/13 to 1//20 time frame. This would allow the
weekly reversal to set up and bring a larger number of individual stocks to
their reversal points.
In either case I suggest scaling out of short
positions and identifying those sectors for long positions.
Jim White
----- Original Message -----
Sent: Wednesday, June 29, 2005 7:49
AM
Subject: [RT] DJIA Projection
Attached is a picture of the DJIA model with 125 trading
day static cycle
applied. Note that the lows agree with the solid blue
paintbars witch
represent the bottoming of five smaller cycles. The next
cycle low is
10/13/05. If the pitchfork can be believed, the low projection
is around
9100. I would expect a five wave decline into this period.The
10520
projection comes from a Near Impulse day on Monday (Tuesday since
Monday is
a holiday) and resistance at the upper fork line.
Jim
White
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