maxi's - do me, i'm famous - thursday, page-92

And now for something really scary. Don't let small child see this before going to bed tonight. :)



A large Head'n'Shoulders formation on the DJ Industrial Average. It has now completed.

The measured move would take the DJIA well below the support level set back in late 2010 and April 2010 and down to support in August 2010.

Given that a h'n's formation usually tests the neckline, I've arrowed in a possible scenario.

The fly in the ointment is the long term uptrend line from July 2010. That might halt the descent. It did last night. For how long?

Given the way support levels have been falling, that one might also give way.

The market is oversold - a test of the neckline is highly probable.

If the market should push up through the neckline, then it's back to rally time.

All that is medium to long term stuff - but something to keep in mind.

Good luck
Redb