Is the Dow Jones rally nearing the end?

The Dow Jones index has rallied hard from its late August lows. And sentiment among investors is bullish. But the charts may be indicating an end to the party, says John C Burford.

Next Tuesday, the US Fed will be releasing its deliberations of its latest meeting, and all eyes will be on what it has to say about tapering its bond purchases.

This unprecedented buying programme of $85bn every month of a mixed bag of bonds has been seen by many as providing the liquidity that has kept markets of many kinds supported.

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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.