Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Dow Theory Gives Warning; Can the Fed 'Print Over' It?


Dow Theory warns of a trend change; but is this warning still valid in a market back-stopped by QE-Infinity?

In any case, given the discussion, it seems appropriate to examine a long-term US dollar chart.

Click to enlarge

Moving on to equities, Friday's outlook suggested that if the S&P 500 (INDEXSP:.INX) traded above 1462, that would lead it to a short-term target of 1466-1468 -- this all happened right off the open, with the SPX peaking directly in the middle of the target zone, at 1467.07. The charts also suggested that trade above 1466 could "solidify" the short-term bull case, but as I mentioned in the body of the article, I was only discussing the two highest probability larger-degree wave structures. With Friday's price action now revealed, the form of the rally and subsequent decline have left ambiguity in their wake.

The decline on Friday looks more impulsive than the last rally leg did, but an extended sideways consolidation (triangle) can't be ruled out yet. Beyond that we'll simply have to watch and see who claims the next key level.

Click to enlarge
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos