Another crossroads for the Dow - which way now?

The Dow Jones's recent rally is at a critical stage. Will it continue, or turn back down? John C Burford looks for clues in the charts.

Following yesterday's 'surprise' Bank of England money-printing announcement, stocks and currencies rallied from declining trends. That brings Elliott wave analysis into sharp focus.

If you recall, I suggested that the two-month 'consolidation' phase in the Dow in August and September contained my wave 3 (9 August) and wave 4 (1 September): The Dow looks for direction as it wobbles along the tramlines.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.