thursday oh so boring..not!, page-6

Two developing patterns on the DJI

a) Hourly shows that as of last night the trend line from the 5 October is intact. Notice that the distance from the trend line to highs are getting smaller (bolded black). The question is whether we will see another bounce off the trend line tonight or it will starting bouncing off a horizontal support. We could see some volatility entering the fold as we get closer to a top. Watch for a high next week as I mentioned earlier but we could start seeing topping volatility as earlier leading to a top and correction.



b) Daily DJI shows possible double top and I have marked my 19 November that I am watching (and the astro 15 November). I have highlighted the topping pattern of April to show the volatility that can come into play. Now people that want to catch any downward move I suggest that patience is the key. I'll start unwinding my longs and sell out by the 9 November.