Wednesday, February 13, 2008

The Dow Jones has an even sharper wedge, at it's apex already...


This leads one to think the breakdown could be at the open on Thursday, doesn't it? However, wedges sometimes exhibit a tendency called "overthrow" where the normal end of a wedge can be exceeded by some amount, before the price action finally turns in the direction suggested by the type of wedge (Bullish or Bearish) that has formed...so wait for confirmation of the downtrend before you play this...

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