The key level to watch on the Dow

Extreme bullishness pervades the Dow - and that spells trouble, says John C Burford. Here, he turns to the charts in search of the market top.

In my lastpost on the Dow on 7 March, I noted that the dramatic 200-point decline off the 13,050 high last Tuesday may well be the prelude to further falls.

I also noted that the 13,050 high could be the top to the bear market rally off the October lows.

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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.