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Tuesday, October 20, 2009

DOW showing signs of overbought

The DOW chart looks to be hitting near the end of the 5th Elliott Wave, could be possible to hit close to 10,800, the next resistance line and looks possibly by Turkey time or a couple weeks before Christmas, so I am expecting retail numbers or something will drive this down or up. Down or up? I am betting bearish signal. Hello! Look at the unemployment numbers. Enjoy the bull momentum now caused by earnings, of course earnings are going to look great, every company is running a skeleton crew, but there is not enough topline growth to sustain the bull run. Also, if it even gets to around 10,800, I will be greatly surprised...it is already starting to bounce below this resistance line, but analysts and CNBC are pumping the market before a good dump.

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