Hi Johnno and all. That bottom support line will be everyone's cue to get back on board or to top up. Only bad global news would thump it below the line. Because it's so obvious, because even non chartists will be watching it then the buying pressure will most likely overcome the selling pressure any time the Dow gets close to the support line.
So before we start talking about market crashes we need to see the Dow fall below that support trend line first. Also the Golden Cross is still a Golden Cross and not a Crucifix Cross.
It's been a nice ride and it would naive for anyone to think of the worst case scenarios, when all we're experiencing is possibly the beginning of a negative wave in sentiment and news. It's part and parcel of the whole show. We move up together and we reduce together - just like swimmers being tossed around a surf beach.
Are we going to see a strong and sharp pullback were the tide goes out before the next big wave comes to take us out and over 10,000 points? Watch this space!
