The mighty DOW JONES taken apart:
Dow Jones DAILY timeframe, June 14, 2011
WE shall NOT include Wave Analysis for the time being and go to battle with straight, simple TA ....
The DAILY TREND is still UP, UP, UP. Long trendriders are snoring and sound asleep, knowing that there will be the inevitable upwave.
Why are trendriders unconcerned?
(1) The March 16 low still holding firm.
(2) The 200-day m.a. still unmolested.
(3) DOW THEORY has no trend violation as of today
The only factor upsetting this confirmed continued uptrend is that there is a TRENDLINE broken. But is this trendline a significant one, or is Price simply trying to settle down and form yet another basing point, therefore another trendline anchor point and then CONTINUE northbound?
Price could be simply trying to go to the lower channel line shown, sort of like a Pitchfork phenomenon.
Is there a right shoulder going to be formed after the HEAD touches the shoulders?
There ought to be some sort of TOPPING PHENOMENON, right? The rally from the March 2009 lows was and is significant, so there should be some topping phenomenon - or is that May top a V-shaped topping phenomenon?
Then again we could wait for CNBC and John Murphy who would rather have the 50 m.a. cross below the 200 for there to be a Top call.
So, one can easily see that there is a lot to consider ....
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Therefore the dead one considers only the March 16, 2011 low as the arbiter. And said low is still holding firm.
The DAILY TREND player is still LONG and is snoring, snoring, snoring.
What would he be looking for?
To see how secure that March 16 low really is. Then he'd be looking for the inevitable upwave to see if it can exceed the top, in whch case the LONG rider will go back to sleep. If it cannot take out the top but instead drops like a stone and takes out the March 16 low by 3 bars that do not touch the low of the March 16 candle, its over - that's all she wrote and the trendrider is outtta there with a closed LONG
