DJIA finally decided it has enough fun for now...

If referring back to the days of my fortune telling adventures (yes, I have learned one or two things about fortune telling). There are always a certin window in time for everything to happen. Seems like DJIA has been holding on long enough and its decision to select the time of retreat coincides with Obama's speech on banks control. Is Obama's proposal on banking control really that bad until it is so shocking to the market to go into free fall? Or is that the day where DJIA decided to break its wedge envelop and fall, Obama's speech is just a coincidence?


Fig 1 DJIA Weekly Chart

Firstly, if you look at the daily chart(not shown here), RSI and Stochastic is at the bottom, RSI is even reversing, so probably a rebound on Monday. The weekly chart on the other hand, indicated that DJIA's fall has just started.

The upward wedge created since March last year comes with a measurement with objective of 9,368. If this is the final objective, then things aren't that bad.

Now, if I consider the move from March 09 till Jan 10 as the B wave, then C wave makes its a swing move. I would have a C wave objective of 2,960!!! THIS IS BAD! So is US under Obama going bankrupt? Gosh! I have high hopes on that guy and I am quite supportive of his proposal for control of Banks to ensure investment safety.

Presently the Dow is supported at 10,053 by its 21 weeks moving average while resisted at 10,213.