bulls will be back in a few days, page-30

msk14,

There's nothing in that video to refute really. I completely agree that there is a lot of strength that's coming in at the current lows. It's quite easy to see with all that volume. Whether we move up and on from here with a strong run, I'm have no idea. What I will be watching very closely will be the weekly for the DJIA.

Here's a chart of the DJIA over a 4 year period. Have a look at the boxed area and the volume associated with that particular move. We have huge volume turn up at the lows of Jan '09 with a big shake-out. Two months later, it returns on slightly less volume. Then, we try and move on up but the volume is decreasing. Have a look at what ensues.

That sort of action is what I will be looking out for in the coming months. If I see that turn I would be pretty sure we would see some lowers prices.

If I were to go out on a limb, I would think they we are going to break these current lows and move into the accumulation area, around the 10,000 mark. But making predictions is something I'm not very comfortable with. I'm still waiting for a massive shake-out. With all this fear around, why would the smart money pay higher prices for something that they know they can get for a lower price?

Cheers,

Ads