Dow Jones (11100): Watch 11230…for recovery
Intermediate trend: Bearish
It was said “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; as far as intermediate trend is concerned, retest of July 2006 low i.e. 10660 looks imminent”.
The Dow achieved 10977 as against 11050, without making any efforts to capture 11556.
The recovery seen from the low of 10977 could turned out be an “emotional” recovery from psychological level of 11k, if failed to post close above 11230 (value of the upper trend line of the channel, for Monday).If done, expect a corrective, “time” consuming rally upto 11434-11556. Failure will lead to continuation of the downtrend towards our medium term target objective of 10660.
