Saturday, August 04, 2012

Dow Jones Industrial Average ($INDU)

Friday saw the INDU soar by over 200 points on the so-called 163,000 job creation number for July. (However, if you followed by post from yesterday, you know that those jobs were nothing but a statistical, pie-in-the-sky occurrence made up by the seasonal adjustment factor and one of the largest birth/death adjustments for the month of July.)

Bottom-line for the market is the simple fact that divergences have occurred among the "Full Stochastics, Volume, and Wm%R, which are all negative to the INDU. I am expecting a 500 decline back to the lower boundary of the BB.  (See the following chart.)


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