Friday, August 10, 2007

A tale of two markets– August 10, 2007

A tale of two markets– August 10, 2007

Did you notice that we have a divergence between the Dow and the TSE composite index? The TSE (in blue) has been going downhill continuously (lower highs and lower lows) since achieving a top on July 19th. On the other hand, the Dow Jones industrial (in red) had a bounce establishing higher highs and higher lows. Students of the market will have noticed that the bounce was achieved on lower volume and that the top of the bounce reached the 62% retracement level from the previous downtrend.

The question which will be answered today is who is telling the truth? August 10, 2007 may be a day to remember.

The Word

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