Dow Tumbles Right On Cue

On 4 November I showed this chart and said “The Dow is approaching the top of its trend channel and although it may reach 12,150, all the risk is to the downside. The bear market rally that began in October is over.”

Since then the Dow bounced perfectly off the top of the trend channel and then sold off sharply.

Both the CCI and Williams %R (not shown) are pretty oversold, however the stochastics (circled) show that momentum is still to the downside.

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