Good morning bulls, i am here to rain on your party. And why you...

Good morning bulls, i am here to rain on your party. And why you ask ??......because that is what i do.

i noted early this morning the impressive way the DOW smashed through the 50 dma. i confess it is the 50 i always watch as it is a nice round number but i notice that terry laundry speaks of the 55 dma. As 55 is a fib number i suppose there ay be something in that....but anyway this passage from laundry's website :

"Basically in the milder 1973-74 decline recoveries halted at the 55 day MA like we see in August 08. In the more severe 1929-32 decline the 55 day MA was falling more steeply and the recovery would generally pop just above the 55 day MA by a percent or so. So for this bear market I think a general rule of thumb is any current recovery is likely to peak at or just above the 55 day MA come December"

now looking at the dow chart as of this morning we are just nudging the 55 and the SPX (not shown) is hairs breadth below the 55



but also adding weight to that is the fact there are 2 overhead resistance lines that have now converged on the DOW at the current level. i put a splash of yellow on each day that found resistance or support at the horizontal line....my my that is a lot of yellow lol......and just for ref i included the 50 dma on this chart.