Will stock markets rally in the charts?

Right on cue, the Dow Jones has taken a pasting, says John C Burford. But now the market has reached a very interesting point.

On Friday, I asked the question: Is this the start of a big downward correction in shares? Today, I want to examine this question further in light of last week's action.

This was the chart then:

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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.