The Dow follows the script beautifully

The charts indicate that the moment of truth has arrived for the Dow bulls, says John C Burford. If the market slips now, it could have a long way to fall.

With my focus very much on gold and the euro recently, which are following their scripts, I have somewhat neglected my absolute favourite market the Dow (with S&P and NASDAQ running very close second and third). But today, I am making amends.

I last covered the Dow three weeks ago and the chart belowshows my long-term tramlines at the time.

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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.