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Monday, January 5, 2009

Market Trend since October

From WebSurfinMurf's Financial Blog
The US Stock market has been trading in a range for quite a while, with the exception of a few weeks where the market plummeted 600 points lower, shown in green on the graph.
I am not a chart professional, but it does seem like the DOW is trading in a wedge type range marked in light blue. If this is correct (which I am not a pro at this) the market could make a pullback do 8,700 range before moving higher and breaking the upper trend line with force.
In any event, if the DOW trades over 100 points higher than where it stands today, I would expect the market to continue to break higher.

I'll remain a bull unless the market moves below DOW 8,500, then I'll get cautious. Below DOW 8,175 and I'll reverse my up trend thesis. With the majority of my investments in OIL related ETF's, the market could collapse and oil continue to rise. Still maintaining USO, UCO, and DXO.

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