How much longer can the Dow's rally go on?

The Dow's relief rally has given plenty of opportunities for spread betting trades. But how long will it go on, and how should traders play it? John C Burford examines the charts for clues.

When I left the Dow last week, the market was testing the fourth tramline, and I managed to take a profit out of the short trade from the move down to the 10,600 area.

Since then, the market did shoot up past that fourth tramline.

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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.