Dow Signals Correction

By Colin Twiggs
August 18, 2009 1:00 a.m. ET (3:00 p.m. AET)

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Dow Jones Industrial Average

The Dow broke out of its trend channel and through short-term support, warning of a secondary correction.

Dow Jones Industrial Average

Transport

The Dow Transport Average likewsise broke through support at 3600.

Dow Jones Transportation Average

S&P 500

The S&P 500 broke through short-term support at 990 — also warning of a secondary correction.

Standard & Poors 500

Shanghai Composite

The fall was initiated by a sharp drop in the Shanghai Composite Index, commencing a secondary correction. The latest gap indicates strong selling pressure.

Shanghai Composite Index

Commodities

The CRB Commodities Index broke through support at 255, signaling another test of primary support at 230 — and a negative impact on resources stocks.

CRB Commodities Index


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Colin Twiggs

Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.

Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.

He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.