The Dow looks for direction as it wobbles along the tramlines

After making a top at around 11,450, the Dow Jones is wobbling back and forth along the tramlines as it tries to decide its next direction. John C Burford hunts for clues in the charts.

When I left the Dow last week, the market had rallied to a Fibonacci retrace level where I put in another short trade in the 11,400 area.

I should mention that this trade was inspired by more evidence of a top there than just the Fibonacci retrace.

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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.