The Dow Jones tests chart support again

A line of support in the charts is proving to be a crucial juncture for the Dow. John C Burford explains what that means for technical traders.

Last Friday, I noted the Dow had completed a classic five-wave down pattern and was attempting to make a base in the 14,800 region. The rally to Friday had been a weak affair to that date.

The market had declined, with the wave 3 being characteristically long and strong:

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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.