Tuesday, 23 February 2010

Lower top ?

Weakness in the markets this morning may be producing a lower top.On the Dax for instance we have a lower low than yesterday,turning the 1 day swing chart line down.
The first range down,which was 5 waves on the hourly chart,was 661 points.There was a swing high at 5733 (wave 4?) followed by a decline (w5?) to 5433 and a 3 wave rally to a high of 5743 yesterday.Thus a possible double top (5733 and 5743) The 50% retracement of the decline was 5763,so a double top below this important level would be significant.We are also below the 50% level of the 3rd bull section (5703) (These prices refer to the cash index.The charts I sometimes post are nearest future so there may be a slight difference in the levels)

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