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The rally has turned ferocious, shredding targets and creating new impulse legs on the daily chart with ease. A modest rally to above 3.280 will create yet another, adding weight to the prospect of more upside in the weeks to come. I’ve projected a minimum target of 3.5545 using an “inverse” pattern as shown. These patterns work some of the time, but I don’t recommend initiating trades at their predicted swing points unless the target is corroborated by a stall precisely at the CD midpoint. In this case, that has not occurred.
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Dow’s First Hint of a Trend Failure?
by Rick Ackerman on July 29, 2010 2:27 am GMT · 7 comments
We were looking for a 350-point rally as the week began, but at the rate stocks have been rising it could be Labor Day before the Dow Industrials hit our 10757 target. In the meantime, dirges like yesterday’s could have satisfied neither bulls nor bears, since it took the blue chip average six tedious hours to work its way just 40 points lower. (Get a week’s worth of free forecasts, as well as access to the 24/7 chat room, by clicking here.) Ordinarily we would chalk this up as another day of consolidation within an uptrend that at times seems unstoppable. However, in this case there is a so-far minor concern that bears close watching, since it could be a harbinger of trouble immediately ahead. Specifically, the Indoos have pulled back from Tuesday’s fleeting peak without having » Read the full article