bulls running with help from the fed ...

Hmmm ... despite the hype from every quarter, the US economy is in the toilet big time and the DOW should be sub 10000. Earnings forecasts are dismal and P/E has dropped from 17.5 to 13 in the last 6 months which means the DOW is priced about right if yer believe the forward numbers.

As previous, 2008 will finish in the green because it is an election year in the US and $trillions riding on a Republican (GOP) win however unlikely it might seem now.

The world is screaming for change in direction from the White House but worth remembering the US is a very conservative place and the Democrat each way bet might just not work as planned.

Technically, DOW chart shows consolidation and upside break at 12800 having tested previously as support and failed three times as resistance at this level. Price also nudging Fib(50%) retracement which for EW's is confirmation of a reversal sooo ... 13000 could be retested.




Cheers ... tight stops.


This is only my view ... read the red stuff.