Wednesday, 6 August 2014

ASX 200 turning down from parallel trend line resistance, nearing test of trend line support

Weekly chart, includes after hours trade. Keep an eye on the US markets of course.

S&P 500 testing key 13 month old up trend line, Dow megaphone warns of 60%+ decline ahead

Two hours prior to the US stock market open, S&P 500 futures are down 0.5% or so. Daily chart shows the market is testing a key 13 month old up trend line.

Zooming out now and looking at the Dow. Monthly chart shows the Dow has completed a false break above the upper trend line. This signals the peak of the illustrated bearish megaphone pattern and indicates that a decline to below the 2009 low is beginning. That suggests a greater than 60% decline on the Dow over the next year or two.

Gold trending down

Daily chart. Rally over 1300 required to challenge the current down trend.

Weekly chart. At this timeframe, the market needs to get above the July high and 1350 to beat nearby trend line resistance.