Wednesday, August 11, 2010

Debbie Dow - ner

For those of you who thought you got a Dow Theory buy signal when the Trannies eked out a higher high last month, take a look at these charts (printed 2:45 NYT Wednesday).


The Industrials never broke important resistance even though the took out the June high. Trannies broke resistance but you have to be the nittiest of pickers to call July a higher high over June.

I'm goin' down, down, down
- Bruce Springsteen

3 comments:

William said...

Mike, I remember you saying two things over the last few months, 1) the market always does the opposite of what most expect 2) you didn't think the H&S neckline could be considered broken because too many people were looking at it.

That being said, a wedge for the right shoulder of a H&S is extremely bearish. And now no one is talking about a H&S top...

JS71 said...

Agreed, headed lower from the most recent top. Potentially much lower, but the mkt has the final say.

Quick Takes Pro said...

William,
I have read a lot about that rising wedge so naturally I don't believe it. But I do indeed consider that H/S again.