Wednesday, November 14, 2012
Crash/Bear market alert
These are Dow mini-futures. Currently trading at 12,639 right at a minor up trend line. Key support comes in at 12,400 which is where the up trend line that began in March of 2009. (The parallel upper trend line touches two important highs. Isn't it a beauty.)* Closing below 12,400 on a weekly basis would confirm that the up trend from March 2009 is over. I have always thought that the bear from 2007 to 2009 was leg one, March 2009 to the most recent high is a bear market rally, and that leg two down would be a vicious bear market probably taking out the March 2009 low. I will take a closer look at the daily chart to see how this is unfolding. Right now it is pretty ugly with lower highs and lows that would indicate we are going to get to 12,400 pretty quickly.
*Geeky technical analysis talk.