Dow Signals Correction
By Colin Twiggs
August 18, 2009 1:00 a.m. ET (3:00 p.m. AET)
These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.
Dow Jones Industrial Average
The Dow broke out of its trend channel and through short-term support, warning of a secondary correction.
Transport
The Dow Transport Average likewsise broke through support at 3600.
S&P 500
The S&P 500 broke through short-term support at 990 — also warning of a secondary correction.
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.
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.
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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)