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Thread: chart of the week - Double Top on Dow Transports

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    Default chart of the week - Double Top on Dow Transports

    for what it's worth ... from




    (snip)"today's Dow Jones Transportation Index (DJT) nearly identically emulates the nine-month lead in pattern which occurred on the Nasdaq in 1987 and culminated in the historically famous crash.

    The DJT, a leading index, has traced the 1987 Nasdaq chart up to today's edge of a similar yawning precipice. The key to this event was the successful retest of Double Top resistance as indicated in my previous essay last week. That comparison was between the Qs and the Nasdaq from 1987, which did not decline as anticipated due to impressively good earnings from a few of the leading tech stocks, several of which had multiple downwardly revised estimates preceding earnings release. However it is important to consider that the Qs did not break out from the Double Top pattern either.

    But there are two other leaders which did decline as expected: the DJT and the Russell 2000 Small Cap Index. This essay focuses on the DJT as it most closely follows the Nasdaq 1987 chart which indicates the anticipated decline."(snip)

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    Default Re: chart of the week - Double Top on Dow Transports

    If it breaks below 435, a fifty percent retracement of it's move up from 350 back to support at 400 would not be a surprise. A total crash? That would be a surprise.

    These chart top formations are occurring in many indexes and individual stocks at the moment. I moved into cash Friday. I'm not sure which way things will move in the next couple of weeks, but it's easy enough to jump back in if things continue upward.

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    Default Re: chart of the week - Double Top on Dow Transports

    ^^^ and here I thought that you were an ideological 'PermaBull' !!! LOL

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    Default Re: chart of the week - Double Top on Dow Transports

    Quote Originally Posted by Melonie View Post
    ^^^ and here I thought that you were an ideological 'PermaBull' !!! LOL
    Haha...I have a general bullish outlook on life, but I'm mostly a technical trader...I do what the market tells me I should do. Right now my little voice is adding up the inputs and saying "correction". The banks especially up here have had a big run without any kind of pull back...but they've gone sideways for about 3 months now. BMO made a triple top for example.

    I've done well, and I'm not greedy. I'll watch for a bit and do some day trading.

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