DOW, update

DOW oct 27 2012 bDOW oct 27 2012 s

Just a quick update on the wedge concept as it is progressing in the DOW. It looks like the structure is complete but these diagonals have an annoying habit to go further than one expects. Each led comes in threes and consequently it would be possible that we have only completed waves 1, 2 and 3 and are presently in wave 4 with 5 still to go. However, the proportions of the legs to each other and the whole looks to be near perfect. A break now of the lower boundary would increase the confidence that it is game over for this index.  The question then is what can possible cause, trigger or provide the tipping point for such a change to occur. We have no idea and do not really care. Nevertheless it is hard not to notice that in 9 days from now, or perhaps a little earlier, it might become clear who the next president of the US might become. Obama would be good as he would keep Bernanke in office so you can count on QEs forever, Romney would be good because he favours super free capitalism that should increase profits, that at least is the conception. Perhaps it will soon be clear that concept and reality are miles apart, regardless who wins.