Saturday, 7 January 2012

Decennial Pattern on the Dow Jones Industrial Average

The following chart comes from - please follow the link for details. Food for thought, is all, and two points stand out for me (1) the patterns for both the average decade and the average secular bear market decade indicate a significant bottom being made in mid 2012; and (2) all three patterns indicate that come mid-decade we should prepare for lift-off.

ASX 200 weekly trending down

The ASX 200 is trading within a down trend channel. Also the moving averages indicate that the trend is down.

AUD/USD weekly up trend line broken, hourly shows H & S

The weekly chart up trend line drawn from the early 2009 lows was first broken last September. The market has held up, but for how much longer? is the $million question.

The hourly chart is showing a possible Head and Shoulders top set up, which would be confirmed by a move below the neckline and 1.02 zone.

S&P 500 re-testing Head and Shoulders neckline

I have shown this pattern many times on daily charts, but this time I show it on the weekly for added context.

EUR/USD weekly chart down trend

Have we seen the panic stage of the decline? Or is it about the begin? now that the 2011 low has been decisively broken.

Gold weekly chart up trend channel

The moving averages indicate that the trend is not clear at this time frame.

Silver weekly chart shows completed throw over

Throw over / false upside break set-up. The moving averages indicate that the trend is down.