The Imminent Collapse Of The DJIA & S&P500

The Imminent Collapse Of The Dow Jones Industrial Average and S&P500

The above chart was created by using a method called renko which looks at

price data over time and displays it in a compacted manner, very easy to read

and taken action on regards trading whether you are a retail investor, bank,

mutual fund or hedge fund. Notice the MACD setting underneath the chart.

Because the charting method compacts the data, its now possible to set the MACD

to a much smaller setting such as 5,9,12. The MACD reveals a positive divergence at

the March/2009 bottom and most interesting is the fact it now shows a negative

divergence indicating we have not much to go in price or time on the S&P or DJIA.

Next Blog will have a look at the 10yr Treasury Bond which has generated much

excitement because just a perusal of the double bottom alone is enough to convince

me of the trend change.