DJIA

dji sept 2012

The Dow Jones Industrials sport the same “wedge” pattern as the S&P,. In fact this one is even prettier than the other. The throw-over to date is hardly discernable, a slightly thicker pencil would eliminate it entirely. So, for the moment at least, we will continue to assume that this is the correct pattern. It then follows that we should get a rather sharp breakdown to the base of the pattern at around 9500. What might trigger such a drop is , as always not clear today but, with the help of a little hindsight a few months from now, will prove to have been entirely foreseeable.  Then again, maybe nothing will happen.