Been a long time since my last update.
The DJI is still in an overall long term positive trend.
As I already noted over a year ago, the technicals never really fully unwound as in 2009 however. It's been a long time. Too long for me to be comfortable.
Let's be clear; even a 50% correction at this point would still leave the DJI in a positive uptrend.
With that in mind, there is a rising triangle formation that is shaping up. Should this formation break to the downside, we can seek support at a handful of levels.
There is some clear rising support lines and some modest lateral supports along the way.
The bulk of the support however, is in a price band right around the 40% to 50% retracement level.
More generally:
Globally, the US market is still the favorite refuge for capital.
Compared to Europe, the USA are still a better destination for creative endeavor and entrepreneurship.
Europe is quickly descending into banana republic social unrest brought about by repressive legislation and stifling fiscality.
The DJI is still in an overall long term positive trend.
As I already noted over a year ago, the technicals never really fully unwound as in 2009 however. It's been a long time. Too long for me to be comfortable.
Let's be clear; even a 50% correction at this point would still leave the DJI in a positive uptrend.
With that in mind, there is a rising triangle formation that is shaping up. Should this formation break to the downside, we can seek support at a handful of levels.
There is some clear rising support lines and some modest lateral supports along the way.
The bulk of the support however, is in a price band right around the 40% to 50% retracement level.
More generally:
Globally, the US market is still the favorite refuge for capital.
Compared to Europe, the USA are still a better destination for creative endeavor and entrepreneurship.
Europe is quickly descending into banana republic social unrest brought about by repressive legislation and stifling fiscality.
1st, I would like the technicals to unwind much more.
Then, I am monitoring the rising trend channel for a test
Should the channel not hold, then we can look at the 20K to 18K area as the next solid support.
Effectively though, we have a long way to go before the bull market in the DJI can be declared reversed or dead.