Template Building Report

Dow Jones - a historical decline

The graph of the Dow Jones in the fatal date of May 6, 2010, the scope of this bearish candle is now part of history . In the depths of the day, the Dow Jones made a drop 9194%, a historically low of 997 points in one trading session. Earlier this week, I was talking about the volatility that there was currently on the Dow Jones, this volatility was speaking through the large-scale candlelight type Marubozu who had been present for several days. I mentioned also the importance of support area of 10.988 points who acted as a red warning light for the validation of the reversal of the upward trend in court. And thereafter, the break of Fibonacci retracement of 23.6% added a strong negative bias and validated Breaking the Dow downward Jones.

Day Thursday is now part of market history, regardless of the real reasons that have triggered the sharp drop in North American indices, a break "extreme" has occurred. This candle bearish 9% represents the state of market panic, this is the emotion that is in total chaos, which is the opposite of the most comprehensive supposed "efficiency of equity markets" . Several technical supports were broken this week, but also the state confidence to the markets on which was already very precarious it must be said. This relative confidence is absolutely necessary for economic stabilization and a subsequent recovery potential real, what happened this week is likely to add another building block within the basket of investor confidence and lead to this basket even deeper into the deep waters of instability ...

Tuesday, May 4: "structuring the graphics with support and resistance zones you make rational irrationality somehow you makes visible the structure of the matrix ... "

Highlight the graphic structure of the power relationship between bullish and bearish it is perpetually on the stock market is not a futile exercise in style, this lets you disengage or initiate positions trading strategies that are more favorable trend in court, to synchronize in some ways with the change of stock movement.

previous analysis
http://observateurtechniqueindices.blogspot.com/2010/05/dow-jones-4-mai.html
http://observateurtechniqueindices.blogspot.com/2010/05/dow-jones-3-mai.html

Posted by Claude Bordeleau