Aug 20 2013 There is talk of a correction that could be coming soon. I will admit some indicies have negative RSI 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 degree channel. 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. (13050) Interesting times ahead, Quote " It's not the top or bottom I want it's the bit in the middle" Comments always welcome :)
DOW Price at posting:
$4.16 Sentiment: None Disclosure: Not Held
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