Dow Jones (11350) Intermediate trend: Bearish
It was said” the Dow has retraced the previous leg (11700-13200) in faster time, confirming (2nd stage) the larger degree weakness; near term target is placed at 11640 & 11550.
The Dow surpassed the target while breaching previous low of 11508(Jan08). The falling parallel channel (dotted line), drawn from recent high (May08) has broken downward. A new, steeper, falling channel (marked in blue) indicates continuation in directional downtrend unless 11125-11050 seen.
On the upside, a close above 11556 could 'halt' the downtrend; and will lead to consolidation with corrective up moves towards 11660(minimum)-11928(maximum) region.
As far as intermediate trend is concerned, the situation has been aggravated, further, with this new low. Retest of July 2006 low i.e. 10660 looks imminent.
