Dow threatens support
By Colin Twiggs
August 18, 2010 9:00 p.m. ET (11:00 p.m. AET)
The Dow Jones Industrial Average fell sharply on Thursday, accompanied by strong volume. Failure of support at 10700 would complete the dead cat bounce, offering a target of the 2010 low at 9600*.
* Target calculation: 10800 - ( 12000 - 10800 ) = 9600
Gold renews drive to $2000/ounce
Spot gold broke through resistance at $1800, signaling an advance to test $2000/ounce in the medium-term. Retracement that respects the new support level would strengthen the signal.
* Target calculation: 1800 + ( 1800 - 1600 ) = 2000
Shrinking debt levels warn of a dearth of private capital investment in the UK and Australia — and little job creation as a consequence. Falling household debt in the UK also indicates a weak housing market. But US levels appear to be bottoming.
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