NO REST FOR THE WEARY
That phrase comes to mind when I look at the markets lately. The stock market continues as the psycho market from hell, generating a buy signal, followed by a sell signal, followed by a big upside reversal, an even bigger sell signal, and then a huge upside reversal that, at least on the P&F chart, seems to negate the latest sell signal!
Those points are labeled Buy and Sell on this chart of the Dow Industrials. Most troubling is that the latest sell signal was a quad-bottom breakdown on the chart, normally an especially reliable sign of much lower prices to come. But now, with the Dow back above that breakout point, the picture is again muddled. Does this simply reinforce the beauty of watching the Dow Theory and the PTI and ignoring everything else? The equivalent of Matt's comment last week ... Log in or subscribe to continue reading.