Sunday, November 8, 2009

Divergence - Again

Looking at the Weekly charts of both the DJIA and the XJO the divergence is getting scary. I've been watching this for the past week now and have been waiting to see what happens.

I think the verdict is 'long'.

I think the recent re-trace has only been that, a re-trace before this bull market continues higher. The recent consolidation around these levels is telling me the bulls are coming back to play.

XJO

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DJIA

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