Dow death struggle continues

Contrarians (traders), bottom fishers and congenital optimists –as well as those who fear that they might be left behind when the train leaves the station—are buying stocks.  And then, surprise, traders sell them.  So – stocks go up and down.  A death struggle is taking place between bears and these elements.  At the full moon (yes, the full moon!) bear forces have taken control.  How long they will maintain control is open to question.

So far neither side has succeeded in dominating the market since the panic sell off.


One of the technical phenomena that illustrates this struggle, and its battle ground, is the fact that since the panic sell off and its automatic bounce day no day away has occurred.  Let us emphasize that fact.  Every trading day since those two days has a high or low within their range.  Roughly the high and low of those two days define the range.  In fact since the long down day of December the 1st every trading day has been within the range of that day.

The breakout of these ranges will without doubt be long reaching in price movement.  Until a definitive breakout occurs the tactics we have enunciated here over the past six weeks  seem to continue wise.


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