Monday, October 20, 2008

Dow consolidating off recent lows

As seen in the attached 31-day cart of the Dow Jones we see the index has recently set higher lows but has also set lower highs. These  converging peaks and troughs highlighted by the red lines suggest a resolution of this trading range is coming soon.  Given the host of sentiment indicators that suggest we are at a bottom we would expect this range to resolve itself to the upside  A move back above Friday's peak near 9,281 would be a bullish confirmation.


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