The Dow Decides...

It seems like the Dow is playing to the "Weekly 30MA Catch Up" game that I have been talking about for weeks afterall. It did an about turn right at the top of it's sideways channel today, correcting down 148.27 points, continuing it's sideways movement while the weekly 30 MA continues to catch up with it. Technically, the Dow is overbought on a short term basis when it's 30MA on a weekly scale is far below it's weekly candles. Such cases warrant either the Dow making a severe correction down to the weekly 30MA level before rebounding or moving sideways until the 30MA catches up before resuming the rally. I see overwhelming evidence over the past 3 weeks that the Dow is going on the second mode. There is no evidence suggesting that the sideways channel will collaspe into a bear trend yet and thus no reason to speculate on that.


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