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investorretired  
#1 Posted : Monday, July 17, 2006 1:20:34 PM(UTC)
investorretired

Rank: Advanced Member

Groups: Registered, Registered Users
Joined: 6/13/2005(UTC)
Posts: 52

Attached is a long term semi-log daily chart of the Dow Jones Industrial Index from 1900 to the present. As you can see, if the price is not above a 1,000 day SMA and the 1,000 SMA is not in a strong up trend you can't have roaring bull market. There have been periods in the past where there was a strong bull market followed by a down to sideways market. It looks like we are in the down to sideways part of the market. There is a trend line channel (Magenta) that has contained the trend for a extended period of time and now the price is outside the channel. UserPostedImage
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