Is this the start of a big rally in the Dow?

The Dow Jones rallied strongly since its low early last week. So is this the start of something big? John C Burford looks for clues in the charts.

On Friday, I posed the question: Which way now for the Dow?

If you recall, we saw a low on Tuesday at 10,400. That was possibly the fifth Elliott wave I had been looking for, and covered my shorts near the low, as the momentum was sporting a positive momentum divergence, and I expected some sort of rally.

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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.