Dow Signals Correction
By Colin Twiggs
August 18, 2009 1:00 a.m. ET (3:00 p.m. AET)
The Dow broke out of its trend channel and through short-term support, warning of a secondary correction.
The Dow Transport Average likewsise broke through support at 3600.
The S&P 500 broke through short-term support at 990 — also warning of a secondary correction.
The fall was initiated by a sharp drop in the Shanghai Composite Index, commencing a secondary correction. The latest gap indicates strong selling pressure.
The CRB Commodities Index broke through support at 255, signaling another test of primary support at 230 — and a negative impact on resources stocks.
The strong man is the one who is able to intercept at will the communication between the senses and the mind.
~ Napoleon Bonaparte (1769 - 1821)