DOW

Never mind about the Fed and all that bluster! Technicals say it all and this was simply the top of the channel for both the Dow and S&P. In addition, the S&P hit it's 161.8% Fib extension at the same time. Here's the Dow daily:



dl.dropboxusercontent.com/u/20815047/Dowdaily22_05_13.gif

I note that my channel support is some way from yours remo - I have 14888. The Dow exceeded its 161.8% extension of the 4/6/12 to 5/10/12 move.

Here's the S&P daily:



dl.dropboxusercontent.com/u/20815047/S%26P500daily22_05_13.gif

Similar channel but this time the 161.8% extension of the same move as the Dow came into play so a double whammy of resistance.

There's a real possibility in my mind that this is the wave 4 belonging to the sequence up from 4 June 2012 lows. The only thing that's bothering me about that is that the move up from Nov lows appears to have 7 subwaves to it and there really should be 9 so there's a chance that this correction may not be too bad and there's a final wave up to follow before the larger degree wave 4 which would take a few months to play out.

If there is another move up to come then remo's trendline ought to hold. If not then the target retrace for the Dow would be close to the breakout point at 14200 (assuming a 38.2% Fib target). The same level for the S&P is 1557.

Just my view but in both cases there ought to be some more upside due at some point before the big crash down, perhaps next summer (ie after the 5 waves up from March 2009 lows).

Im planning on going long on a first attempt basis at 14929 for today. This level changes every day.
If the dow goes below 15265 today then this should head towards that trend line.(by looks of things its gonna open with a gap down today).
This is a trend line play and should only be done during market hours with a 40 point stop.
If that trend line fails to stop this correction then look for a deeper correction that may last a few months.
Below that trend line could open up low 14367(38.2 fib).
This could be the long awaited correction that ive mentioned a while back.Go away in May and come back in October senerio.

Dow Hit 156 ftse hit break out point.. ..

dl.dropboxusercontent.com/u/40497882/dow_channel_may22v1.JPG

www.federalreserve.gov/newsevents/testim...ernanke20130522a.htm

scale back or increase.... media playing to the sound of the music, market needed an excuse to sell off... moves were parabola on most indices...

long weekend comin up on both sides of the pond...

watch approx >377/88 > 401 (50%) >419 > 487> retest of highs, failure to exceed that and it starts to reverse down then supports 260> 237>158> ****5122/00***> 14900 > 14500 & ultimately a retest of dow breakout.

***v.imp

dow found decent support 260 / spx 1648 if that fails again then lower we go...

will pop an updated chart when i get a min...
cheers WS

The trend is still up - surely?

Ben's statement elevated the markets to new highs; The digestion of the news was interpreted as a negative, and yet, yet, yet, at no point did the Fed say anything about slowing or stopping. If anything, the Fed re-iterated that support will continue until the Unemployment rate drops to 6.5%.

In my humble view - minus chart - the market will continue upwards.