DOW tech update

The DOW weekly chart shows a perfect short term bottom at least as we have a bullish divergence pattern combined with a channel support and we produced that low with a perfect 13 count and will have as of tomorrow a monthly reversal pattern.
After such sharp retracements or impulsive waves up we need to see a corrective move within which started on Friday and as a weekly count happens mostly in week 4 or 5 and we are now in week 4 and have made almost a 38% retracement which is at 7376. We might even extend towards 7000 sometime next week as this corrective move should unfold in an ABC wave pattern and tomorrows window dressing should bring prices up briefly but we are biased for a few days of volatile downside correction before bigger wave B up can start.

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~ by behindthematrix on April 1, 2009.

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