Aug 20 2013There is talk of a correction that could be coming...

Aug 20 2013
There is talk of a correction that could be coming soon. I will admit some index's look top heavy with RSI neg divergence. If we trade the chart then let's look at the DOW, as it being a heavy weight index and when it sneezes Australia get's the cold.
Time for a correction, or resuming as normal ?
Below is a chart with Gann 45 degree angles on it. I have to admit I don't study Gann in depth but have found important discoveries in trend confirmation and some HP trading signals.
Monthly chart showing typical Gann lines marked 45* Currently the Dow is in a 63* channels. This is quite bullish, until last months low is taken out I would not be looking look to go short. Would I go long ... no, Sitting on hands ... yes. This can be a good trade in itself. If we do break last months low then in Gann theory there is a tendancy for price to gravitate to the next 45* line down. (the line closest to #2) This level is near the all important fibonacci level of 50%. This is a logical area of support if the Dow breaks down. (13,100)
Interesting times ahead, Quote " It's not the top or bottom I want it's the bit in the middle"
Comments always welcome :)